Ryan Company Owns 80% of Chase Company

question 79

Multiple Choice

Ryan Company owns 80% of Chase Company. The original balances presented for Ryan and Chase as of January 1, 2013 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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Definitions:

Instinctive Drift

The phenomenon where an animal's learned behavior reverts to its instinctual behaviors, undermining conditioned responses.

Mirror Neurons

Cells in the nervous system that are activated both during an individual's own actions and when witnessing the same actions executed by someone else, believed to play key roles in grasping the actions of others, acquiring skills through mimicry, and experiencing empathy.

Cognitive Maps

Mental representations of physical locations, helping an individual to navigate and understand spatial environments.

Latent Learning

A form of learning that occurs without any obvious reinforcement or immediate demonstration of the learned behavior, becoming apparent only when there is motivation to demonstrate it.