Question

On December 31, 2006, Giant-Petrel Corporation's Investment in Penguin Corporation account had a balance of $525,000....

On December 31, 2006, Giant-Petrel Corporation's Investment in Penguin Corporation account had a balance of $525,000. The balance consisted of 80% of Penguin's $600,000 stockholders' equity on that date and $45,000 of goodwill. On January 2, 2007, Penguin increased its outstanding common stock from 15,000 to 18,000 shares.

Question: Assume instead that Penguin sold the additional 3,000 shares to outside interests for $150,000 on January 2, 2007. Giant-Petrel's percentage ownership immediately after the sale of stock would be:

a. 66-2/3%    b. 75% c. 80% d. 83-1/3%

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Stewart Corporation's balance sheet at December 31, 2016, showed the following:    Short-term investments, at fair...
Stewart Corporation's balance sheet at December 31, 2016, showed the following:    Short-term investments, at fair value               $40,000 Stewart Corporation's trading portfolio of stock investments consisted of the following at December 31, 2016:        Stock       Number of Shares   Cost      Conn Common Stock   200   $28,000    Hall Common Stock   300   9,000            $37,000 During 2017, the following transactions took place:    Feb.   5   Sold 100 shares of Conn common stock for $18,000.   ...
Balance sheet December 31 Assets 2007 2006 Cash $25,000 $40,000 Short term investments 15,000 60,000 Accounts...
Balance sheet December 31 Assets 2007 2006 Cash $25,000 $40,000 Short term investments 15,000 60,000 Accounts receivable 50,000 30,000 Inventory 50,000 70,000 Property, plant and equipment (net) 160,000 200,000 Total assets $300,000 $400,000 Liabilities and stockholders equity    Accounts payable $20,000 $30,000 Short term notes payable 40,000 90,000 Bonds payable 80,000 160,000 Common stock 60,000 45,000 Retained earnings 100,000 75,000 Total liabilities and stockholders equity $300,000 $400,000 Income statement (for the year ended December 31, 2007) Net sales $360,000 Cost...
Balance sheet December 31 Assets 2007 2006 Cash $25,000 $40,000 Short term investments 15,000 60,000 Accounts...
Balance sheet December 31 Assets 2007 2006 Cash $25,000 $40,000 Short term investments 15,000 60,000 Accounts receivable 50,000 30,000 Inventory 50,000 70,000 Property, plant and equipment (net) 160,000 200,000 Total assets $300,000 $400,000 Liabilities and stockholders equity    Accounts payable $20,000 $30,000 Short term notes payable 40,000 90,000 Bonds payable 80,000 160,000 Common stock 60,000 45,000 Retained earnings 100,000 75,000 Total liabilities and stockholders equity $300,000 $400,000 Income statement (for the year ended December 31, 2007) Net sales $360,000 Cost...
The post-closing trial balance of Blossom Corporation at December 31, 2020, contains the following stockholders’ equity...
The post-closing trial balance of Blossom Corporation at December 31, 2020, contains the following stockholders’ equity accounts. Preferred Stock (14,000 shares issued) $700,000 Common Stock (240,000 shares issued) 2,400,000 Paid-in Capital in Excess of Par—Preferred Stock 240,000 Paid-in Capital in Excess of Par—Common Stock 380,000 Common Stock Dividends Distributable 240,000 Retained Earnings 966,500 A review of the accounting records reveals the following. 1. No errors have been made in recording 2020 transactions or in preparing the closing entry for net...
2- Dubai Corporation acquired 100 percent of Sharjah Company's common stock on January 1, 2019. Balance...
2- Dubai Corporation acquired 100 percent of Sharjah Company's common stock on January 1, 2019. Balance sheet data for the two companies immediately following the acquisition follows: Item Dubai Corporation Sharjah Company Cash $ 30,000 $ 25,000 Accounts Receivable 80,000 40,000 Inventory 150,000 55,000 Land 65,000 40,000 Buildings and Equipment 260,000 160,000 Less: Accumulated Depreciation (120,000 ) (50,000 ) Investment in Spin Company Stock 150,000 Total Assets $ 615,000 $ 270,000 Accounts Payable $45,000 $33,000 Taxes Payable 20,000 8,000 Bonds...
The stockholders' equity section of Ben Co.'s December 31, 20X5 balance sheet consisted of the following:...
The stockholders' equity section of Ben Co.'s December 31, 20X5 balance sheet consisted of the following: Common stock, $20 par, 40,000 shares authorized and outstanding $800,000 Additional paid-in capital 360,000 Retained earnings (deficit) (320,000) On January 2, 20X6, Ben put into effect a stockholder-approved quasi-reorganization by reducing the par value of the stock to $10 and eliminating the deficit against additional paid-in capital. Immediately after the quasi-reorganization, what amount should Ben report as additional paid-in capital? A. $80,000 B. $360,000...
Princeton Company acquired 75 percent of the common stock of Sheffield Corporation on December 31, 2011....
Princeton Company acquired 75 percent of the common stock of Sheffield Corporation on December 31, 2011. On the date of acquisition, Princeton held land with a book value of $150,000 and a fair value of $300,000; Sheffield held land with a book value of $100,000 and fair value of $500,000. What amount would land be reported in the consolidated balance sheet prepared immediately after the combination? a.$650,000 b.$500,000 c.$550,000 d.$375,000 On January 1, 2011, Primer Corporation acquired 80 percent of...
Your Name, Inc. Balance Sheet 12/31/2017                         Current Assets          &nbs
Your Name, Inc. Balance Sheet 12/31/2017                         Current Assets                                     Cash                                                    $18,000                                     Marketable Securities (Short-term)        2,000                                     Accounts Receivable                           14,000                                         Allowance for Bad Debt                 (2,000)                                     Inventory                                            15,000                                     Prepaid Insurance                                   5,000                                        Total Current Assets                        $52,000                         Property, Plant, and Equipment                                     Land                                                    $30,000                                     Building                                              150,000                                         Accumulated Dep. – Building        (45,000)                                     Equipment                                           100,000                                         Accumulated Dep. - Equipment     (20,000)                                        Total PPE                                         $215,000                                    ...
During the current year, Marlene, Nancy and Olive formed a new S Corporation. Solely in exchange...
During the current year, Marlene, Nancy and Olive formed a new S Corporation. Solely in exchange for stock, Marlene and Nancy contributed appreciated property, while Olive contributed services. The exchanges of Marlene and Nancy will be nontaxable if: Olive receives 30% of the stock Olive receives 80% of the stock Olive receives 15% of the stock Marlene and Nancy together receive 50% of the stock In June of 2018, Alice acquired her only machine for $30,000 to use in her...
What role could the governance of ethics have played if it had been in existence in...
What role could the governance of ethics have played if it had been in existence in the organization? Assess the leadership of Enron from an ethical perspective. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies, collapsed in 2001 under a mountain of debt...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT