On January 1, 2016, P Corporation Purchased 75% of S

Multiple Choice

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 that P Corporation purchased the additional shares what would be their current percentage ownership on December 31, 2016?

A) 62 1/2%.
B) 75%
C) 79 1/6%
D) 100%