Use the Following Information to Answer the Question(s)below

question 37

Multiple Choice

Use the following information to answer the question(s) below.
On December 31,2010,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 2,2011,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 2,2011.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%

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Definitions:

Observations

Data points collected during an experiment or study.

Degrees Of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution or a system without violating any constraints.

Multiple Regression

A statistical method that predicts the behavior of a dependent variable based on two or more independent variables.

Estimated Regression

A statistical method for estimating the relationships among variables, often used to predict the value of a dependent variable based on values of independent variables.