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Ryan Company purchased 80% of Chase Company for $270,000 when Chases book value was $300,000. Ryan paid no premium. Chase has 50,000 shares outstanding and
Ryan Company purchased 80% of Chase Company for $270,000 when Chases book value was $300,000. Ryan paid no premium. Chase has 50,000 shares outstanding and currently has a book value of $400,000.
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?
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