Webb Company Owns 90% of Jones Company Assume Jones Issues 20,000 New Shares of Its Common Stock

question 15

Multiple Choice

Webb Company owns 90% of Jones Company. The original balances presented for Jones and Webb as of January 1, 2013 are as follows: $\begin{array}{lr}\text { Jones Company: } & \\\text { Shares outstanding } & 100,000 \\\text { Book value of Jones } & \$ 1,200,000 \\\text { Book value per share } & \$ 12 \\\text { Webb Company: } & \\\text { Shares owned of Jones } &90,000 \\\text { Book value of investment } & \$ 1,080,000\end{array}$ Assume Jones issues 20,000 new shares of its common stock for $15 per share. Of this total, Webb acquires 18,000 shares to maintain its 90% interest in Jones. After acquiring the additional shares, what adjustment is needed for Webb's investment in Jones account?

• A)$270,000 increase.
• B)$270,000 decrease.
• C)$27,000 increase.
• D)$27,000 decrease.
• E)No adjustment is necessary.

Discuss the implications of social power and leadership dynamics within groups.

Identify and differentiate between the various bases of power as defined by French and Raven.

Understand the impact of group dynamics and leadership on obedience and social conformity.

Explore the effects of personality traits on the use of power tactics and obedience to authority.

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Definitions:

Public Companies

Companies that have issued securities through an initial public offering and are traded on at least one stock exchange or in over-the-counter markets.

General Duty

An obligation imposed on individuals or entities to adhere to a standard of reasonable care while performing any acts that could foreseeably harm others.

Accuracy

The degree to which the result of a measurement, calculation, or specification conforms to the correct value or a standard.

Professionals

Individuals with specialized skills or knowledge in a particular field, often requiring formal education or training.