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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'
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. What is Giant's percentage ownership in Penguin immediately after the purchase of the additional stock?
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