Question: PLEASE SHOW ME THE STEPS TO GET THE RIGHT ANSWER. Ryan Company owns 80% of Chase Company. The original balances presented for Ryan and Chase

PLEASE SHOW ME THE STEPS TO GET THE RIGHT ANSWER.

PLEASE SHOW ME THE STEPS TO GET THE RIGHT ANSWER. Ryan Company

Ryan Company owns 80% of Chase Company. The original balances presented for Ryan and Chase as of January 1, 2011, are as follows: Chase Company: Shares outstanding 50,000 Book value $400,000 Book value per share $8 Ryan Company: Shares owned of Chase Book value of investment in Chase 40,000 $320,000 Assume Chase issues 30,000 additional shares common stock solely to Ryan for $12 per share. 54. After acquiring the additional shares, what adjustment is needed for Ryan's investment in Chase account? A. $70,000 increase. B. $70,000 decrease. C. $15,000 increase. D. $15,000 decrease. E. No adjustment is necessary

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