E 8-11 Treasury stock by subsidiary Bence NYRT was a 70 percent subsidiary of Nora NYRT. On January 3, 2014, the balance of investment account in Bence NYRT was $350,000 while the total equity of Bence NYRT was $450,000. On January 4, 2014, Bence NYRT purchased 1000 of its own outstanding stocks from the noncontrolling interest for $60 per share. Before the treasury stock transaction, Bence NYRT had 9,000 outstanding stocks.

REQuIRED 1. Calculate the ownership percentage of Nora NYRT in Bence NYRT after the treasury stock transaction.

2. Prepare a journal entry to adjust investment in Bence NYRT account.

3. Calculate the amount of investment in Bence NYRT after the transaction.