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

question 8

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 to outside interests for $150,000 on January 2,2014.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:

Exercise Regularly

The practice of engaging in physical activity on a routine basis to improve or maintain one's health and fitness.

External Variable

Factors outside of a study or experiment that can influence or affect its outcome or the behavior of subjects under observation.

Intellectual Background

Refers to an individual's accumulated knowledge, education, and cognitive abilities.

Family Practices

Medical practices that provide comprehensive health care for individuals and families across all ages, genders, diseases, and parts of the body.