Pete Inc. purchased 80% of Paul Co. for $270,000 when Pauls book value was $300,000....
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Accounting
Pete Inc. purchased 80% of Paul Co. for $270,000 when Pauls book value was $300,000. Paul has 50,000 shares outstanding and currently has a book value of $400,000.
Assume Paul issues 30,000 additional shares of common stock solely to Pete Inc. for $12 per share.
What is the new percent ownership Pete owns in Paul?
80.0%.
87.5%.
90.0%.
75.0%.
82.5%.
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