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

question 45

Multiple Choice

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

On December 31, 2013, 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, 2014, 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 2,2014.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%

---

Definitions:

Extraneous Variables

Variables other than the independent variable that may affect the outcome of an experiment, potentially confounding the results if not controlled.

Ethnographic Research

A qualitative research method focused on studying cultures and communities through direct observation, participation, and immersion.

Shared Values

Common beliefs, principles, or standards held by a group, organization, or society that guide behavior and decision-making.

Detailed Stories

Narratives or accounts that provide an in-depth and comprehensive description of events or experiences.