Button-quail Corporation owned a 70% interest in Savannah Corporation at December 31, 2006, and Button-quail's Investment in
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Question:
Button-quail Corporation owned a 70% interest in Savannah Corporation at December 31, 2006, and Button-quail's Investment in Savannah account had a balance of $3,900,000. Savannah stockholders' equity on this date was as follows:
Capital stock, $10 par value $3,000,000
Retained Earnings. 2,400,000
Total Stockholders' Equity $5,400,000
On January 1, 2007, Savannah issues 80,000 new shares of common stock to Button-quail for $16 each.
What is Button-quail's percentage ownership in Savannah after Savannah issues its stock to Button-quail?
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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