Ryan Company Owns 80% of Chase Company Assume Chase Reacquired 8,000 Shares of Its Common Stock from Presented

question 78

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: $\begin{array}{l}\text { Chase Company: }\\\begin{array}{lr}\text { Shares outstanding } & 50,000 \\\text { Book value } & \$ 400,000 \\\text { Book value per share } & \$ 8\\\\\text { Ryan Company: }\\\text { Shares owned of Chase } & 40,000 \\\text { Book value of investment in Chase } & \$ 320,000\end{array}\end{array}$ Assume Chase reacquired 8,000 shares of its common stock from outsiders at $10 per share.
-When Ryan's new percent ownership is rounded to a whole number, what adjustment is needed for Ryan's investment in Chase account?

• A) $16,000 decrease.
• B) $60,000 decrease.
• C) $64,000 increase.
• D) $64,000 decrease.
• E) No adjustment is necessary.

---

Definitions:

Social Media Platforms

Online spaces and services where users can interact, share content, and communicate with one another.

Transparency

The practice of being open, honest, and straightforward about various company operations, ensuring no hidden agendas or conditions.

Disseminate Information

To disseminate information means to spread knowledge, news, or other data widely, ensuring it reaches a broad audience through various means, including digital and print media.

GAP Model

A framework for identifying and addressing gaps between customer expectations and experiences in service delivery.