Assume that Penguin sold the additional 3,000 shares directly to Giant for $150,000 on January 2, 2014. Giants 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%
Answer:C
Assume that Penguin sold the additional 3,000 shares directly to Giant for $150,000 on January 2, 2014. Giants 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%
Explanation: C) (Parent had 80% of 15,000 shares, or 12,000 shares. They now hold 15,000 of 18,000 shares) = 83.33%