On January 1 2013, Pounder Company Purchased 75% of SludgeSmile

Multiple Choice

On January 1 2013, Pounder Company purchased 75% of SludgeSmile Company for $500,000.SludgeSmile Company's stockholders' equity on that date was equal to $600,000 and SludgeSmile Company had 60,000 shares issued and outstanding on that date.SludgeSmile Company Corporation sold an additional 15,000 shares of previously unissued stock on December 31, 2013.
Assume SludgeSmile Company sold the 15,000 shares to outside interests, Pounder Company's percent ownership would be:

A) 33 1/3%
B) 60%
C) 75%
D) 80%