Usry Company holds stock in company A and company B and possesses voting control over both. Balance sheet data follow:
Usry Corporation
|
Investment
|
|
Long-term liabilities
|
$ 30,000
|
|
Company A
|
$ 20,000
|
Preferred stock
|
10,000
|
|
Company B
|
80,000
|
Common stock equity
|
60,000
|
|
Total
|
$100,000
|
Total
|
$100,000
|
Company A
|
Current assets
|
$200,000
|
Current liabilities
|
$100,000
|
|
Noncurrent assets
|
300,000
|
Long-term liabilities
|
200,000
|
|
|
Common stock equity
|
200,000
|
|
Total
|
$500,000
|
Total
|
$500,000
|
Company B
|
Current assets
|
$300,000
|
Current liabilities
|
$200,000
|
|
Noncurrent assets
|
400,000
|
Long-term liabilities
|
350,000
|
|
|
Common stock equity
|
150,000
|
|
Total
|
$700,000
|
Total
|
$700,000
|
(a) What is the percent of total assets controlled by Usry Corporation resulting from its common stock equity?
(b) Assuming another company owns 25 percent of the common stock of Usry and has voting control, what is the percent of the total assets controlled by the other firm's equity?