Ryan Company Owns 80% of Chase Company

question 56

Multiple Choice

Ryan Company owns 80% of Chase Company. The original balances presented for Ryan and Chase as of January 1, 2011, are as follows:

Assume Chase issues 30,000 additional shares common stock solely to Ryan for $12 per share.
After acquiring the additional shares, what adjustment is needed for Ryan's investment in Chase account?

• A) $70,000 increase.
• B) $70,000 decrease.
• C) $15,000 increase.
• D) $15,000 decrease.
• E) No adjustment is necessary.

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Definitions:

Personal Attention

Personal attention refers to the individualized care and consideration given to customers or clients, often leading to increased satisfaction and loyalty.

Advice

Guidance or recommendations offered to solve a problem or make a decision.

Mentors

Experienced and trusted advisors who provide guidance, support, and knowledge transfer to less experienced individuals, aiding in their personal and professional development.

Stay with Company

The act of an employee choosing to remain employed with the same organization over time, often reflecting job satisfaction or loyalty.