Use the following information to answer the question(s) below.

Goldberg Corporation owned a 70% interest in Savannah Corporation on December 31, 2013, and Goldberg's Investment in Savannah account had a balance of $3,900,000. Savannah's stockholders' equity on this date was as follows:
$$\begin{array} { l l }
\text { Capital stock, \$10 par value } & \$ 3,000,000 \
\text { Retained Earnings } & \underline { 2,400,000 } \
\text { Total Stockholders' Equity } &\underline { \$ 5,400,000}
\end{array}$$
-What is Goldberg's percentage ownership in Savannah after Savannah issues its stock to Goldberg?
A)76.32%
B)80.43%
C)82.57%
D)83.43%

Question

Use the following information to answer the question(s) below.

Goldberg Corporation owned a 70% interest in Savannah Corporation on December 31, 2013, and Goldberg's Investment in Savannah account had a balance of $3,900,000. Savannah's stockholders' equity on this date was as follows:
$$\begin{array} { l l } 
\text { Capital stock, \$10 par value } & \$ 3,000,000 \
\text { Retained Earnings } & \underline { 2,400,000 } \
\text { Total Stockholders' Equity } &\underline { \$ 5,400,000}
\end{array}$$
-What is Goldberg's percentage ownership in Savannah after Savannah issues its stock to Goldberg?
A)76.32%
B)80.43%
C)82.57%
D)83.43%

Quizplus · Accepted Answer

The Answer is A

Use the Following Information to Answer the Question(s) Below -What Is Goldberg's Percentage Ownership in Savannah After Savannah Issues