On January 1, 2016, P Corporation purchased 75% of S Corporation for $500,000. S's stockholders' equity on that date was equal to $600,000 and S had 40,000 shares issued and outstanding on that date. S Corporation sold an additional 8,000 shares of previously unissued stock on December 31, 2016.

Assume S sold the 8,000 shares to outside interests, P's percent ownership would be:

A)

56 1/4%

B)

62 1/2%

C)

75%

D)

79 1/6%