Ryan Company Owns 80% of Chase Company

question 69

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 reacquired 8,000 shares of its common stock from outsiders at $10 per share.
What should the adjusted book value of Chase be after the treasury shares were purchased?

• A) $400,000.
• B) $480,000.
• C) $320,000.
• D) $336,000.
• E) $464,000.

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