Webb Company owns 90% of Jones Company. The original balances presented for Jones and Webb as of January 1, 2011, are as follows:

Jones sells 20,000 shares of previously unissued shares of its common stock to outside parties for $10 per share. What is the new percent ownership of Webb in Jones after the stock issuance? Please provide detailed calculation.

A.

75%.

B.

90%.

C.

80%.

D.

64%.

E.

60%.