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

question 17

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 to outside interests for $150,000 on January 2,2011.Giant's percentage ownership immediately after the sale of additional stock would be

• A)66-2/3%.
• B)75%.
• C)80%.
• D)83-1/3%.

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Definitions:

Historical Sales Data

Records of past sales activities used to analyze trends, performance, and business growth strategies.

Dependent Variable

In research and experiments, it is the variable that is tested and measured, often to see the effect of changes in an independent variable.

Basic Functions

Fundamental operations or activities crucial for the successful operation or formation of an entity or concept.

Production Concept

The philosophy of a business that concentrates more on the product that the business makes than on customer needs.