Ryan Company Purchased 80% of Chase Company for $270,000 When

Multiple Choice

Ryan Company purchased 80% of Chase Company for $270,000 when Chase's book value was $300,000. Chase has 50,000 shares outstanding and currently has a book value of $400,000.Assume Chase issues 30,000 additional shares common stock solely to Ryan for $12 per share.What is the adjusted book value of Chase Company after the issuance of the shares?

A) $608,000.
B) $720,000.
C) $680,000.
D) $760,000.
E) $400,000.