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.

13. 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.

14. 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%.

15. When Ryans 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.

Chase Company: Shares outstanding Book value Book value per share 50,000 $400,000 $8 Ryan Company: Shares owned of Chase Book value of investmentin Chase 40,000 $320,000