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question 45

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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


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Investor Population

The demographic and psychographic composition of individuals or entities that invest in various types of assets.

United States

A country in North America, consisting of 50 states and a federal district, known for its economic and military power.

Entrepreneur Angels

Wealthy individuals who provide capital for startups, usually in exchange for ownership equity or convertible debt.

Active Involvement

Participation that is fully engaged and contributory towards a project or activity.

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