Ryan Company Owns 80% of Chase Company

question 20

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 is Ryan's percent ownership in Chase after the acquisition of the treasury shares (rounded) ?

• A) 80%.
• B) 95%.
• C) 64%.
• D) 76%.
• E) 69%.

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Definitions:

Personal Mandate

The requirement under the Patient Protection and Affordable Care Act (PPACA) of 2010 that all U.S. citizens and legal residents purchase health insurance unless they are already covered by employer-sponsored health insurance or government-sponsored health insurance (Medicaid or Medicare).

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