Ryan Company Purchased 80% of Chase Company for $240,000 When

Multiple Choice

Ryan Company purchased 80% of Chase Company for $240,000 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 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) $400,000.
B) $480,000.
C) $320,000.
D) $336,000.
E) $464,000.