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 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%