Use the Following Information to Answer the Question(s) Below -What Is Goldberg's Percentage Ownership in Savannah After Savannah Issues

Use the following information to answer the question(s) below.

Goldberg Corporation owned a 70% interest in Savannah Corporation on December 31, 2013, and Goldberg's Investment in Savannah account had a balance of $3,900,000. Savannah's stockholders' equity on this date was as follows:
$$\begin{array} { l l } \text { Capital stock, \$10 par value } & \$ 3,000,000 \\\text { Retained Earnings } & \underline { 2,400,000 } \\\text { Total Stockholders' Equity } &\underline { \$ 5,400,000}\end{array}$$
-What is Goldberg's percentage ownership in Savannah after Savannah issues its stock to Goldberg?

A) 76.32%
B) 80.43%
C) 82.57%
D) 83.43%

Correct Answer:

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