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

1. Assume that Paulus Corporation purchased the additional shares what would be their current percentage ownership on December 31, 2016?

2. Assume S sold the 8,000 shares to outside interests, P's percent ownership would be?

Answer rating: 100% (QA)

Shares owned by P Corporation 40000 x ... View the full answer