Question
SB Ryan Company owns 80% of Chase... Ryan Company purchased 80% of Chase Company for $270,000 when Chases book value was $300,000. Ryan paid no
SB Ryan Company owns 80% of Chase...
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 issues 30,000 additional shares common stock solely to Ryan for $12 per share.
MC Qu. 54 After acquiring the additional shares...
After acquiring the additional shares, what adjustment is needed for Ryan's investment in Chase account?
Multiple Choice
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$70,000 increase.
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$70,000 decrease.
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$12,188 decrease.
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$12,188 increase.
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No adjustment is necessary.
12,188 decrease is WRONG
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Economics Private And Public Choice
Authors: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
17th Edition
0357133994, 9780357133996
