Ryan Company Owns 80% of Chase Company Assume Chase Reacquired 8,000 Shares of Its Common Stock from Presented

Multiple Choice

Ryan Company owns 80% of Chase Company. The original balances presented for Ryan and Chase as of January 1, 2013 are as follows: $\begin{array}{lr}\text { Chase Company: } & \\\text { Shares outstanding } & 50,000 \\\text { Book value } & \$ 400,000 \\\text { Book value per share } & \$ 8 \\& \\\text { Ryan Company: } &\\\text { Shares owned of Chase } & 40,000 \\\text { Book value of investment in Chase } & \$ 320,000 \end{array}$ 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.