Question-giant-petrel corporation

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Reference no: EM13259071

On December 31, 2006, Giant-Petrel Corporation's Investment in Penguin Corporation account had a balance of $525,000. The balance consisted of 80% of Penguin's $600,000 stockholders' equity on that date and $45,000 of goodwill. On January 2, 2007, Penguin increased its outstanding common stock from 15,000 to 18,000 shares.

Assume instead that Penguin sold the additional 3,000 shares to outside interests for $150,000 on January 2, 2007. Giant-Petrel's percentage ownership immediately after the sale of stock would be:

66-2/3%.

75%.

80%.

83-1/3%.

Reference no: EM13259071

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