Multiple Choice
Use the following information to answer the question(s) below.
On December 31, 2013, Giant Corporation's Investment in Penguin Corporation account had a balance of $500,000. The balance consisted of 80% of Penguin's $625,000 stockholders' equity on that date. Giant owns 80% of Penguin. On January 2, 2014, Penguin increased its outstanding common stock from 15,000 to 18,000 shares.
-Assume that Penguin sold the additional 3,000 shares directly to Giant for $150,000 on January 2,2014.Giant's percentage ownership in Penguin immediately after the purchase of the additional stock is
A) 66-2/3%.
B) 80%.
C) 83-1/3%.
D) 86-2/3%
Correct Answer:
Verified
Correct Answer:
Verified
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