Webb Company Owns 90% of Jones Company

question 41

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: Jones sells 20,000 shares of previously unissued shares of its common stock to outside parties for $10 per share.
What adjustment is needed for Webb's investment in Jones account?

• A) $180,000 increase.
• B) $180,000 decrease.
• C) $30,000 increase.
• D) $30,000 decrease.
• E) No adjustment is necessary.

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Definitions:

Heavy Workload

The condition of having a large amount of work to do in a limited amount of time.

Role Conflict

A condition of being faced with incompatible role expectations.

Role Ambiguity

Lack of clarity of job goals or methods.

Heavy Responsibility

The burden or obligation of significant duties or tasks that have critical consequences for success or failure.