On January 1 2016, Pounder Company Purchased 75% of Sludge

Multiple Choice

On January 1 2016, Pounder Company purchased 75% of Sludge Company for $500,000. Sludge Company's stockholders' equity on that date was equal to $600,000 and Sludge Company had 60,000 shares issued and outstanding on that date. Sludge Company Corporation sold an additional 15,000 shares of previously unissued stock on December 31, 2016. Assume Sludge 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%