Ryan company owns 80 of chase company the original balances, Ask an Expert

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Ryan Company owns 80% of Chase Company. The original balances presented for Ryan and Chase as of January 1, 2011 are as follows:

Assume Chase reacquired 8,000 shares of its common stock from outsiders at $10 per share.
When Ryan's new percent ownership is rounded to a whole number, what adjustment is needed for Ryan's investment in Chase account? Please provide detailed calculation.

a. $16,000 decrease.

b. $60,000 decrease.

c. $64,000 increase.

d. $64,000 decrease.

e. No adjustment is necessary.

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M91628117

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