Webb Company purchased 90% of Jones Company for $990,000 when the book value of Jones was $1,000,000. There was no premium paid by Webb. Jones currently has 100,000 shares outstanding and a book value of $1,200,000.Jones sells 20,000 shares of previously unissued shares of its common stock to outside parties for $10 per share.What is the adjusted book value of Jones after the sale of the shares?
A. $1,400,000.
B. $1,280,000.
C. $1,050,000.
D. $1,440,000.
E. $200,000.
Answer: A
Business
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