Ryan Company purchased 80% of Chase Company for $270,000 when Chase's 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 reacquired 8,000 shares of its common stock from outsiders at $10 per share.What should the adjusted book value of Chase be after the treasury shares were purchased?
A. $320,000.
B. $464,000.
C. $336,000.
D. $480,000.
E. $400,000.
Answer: A
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