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. When Ryan's new percent ownership is rounded to a whole number, what adjustment is needed for Ryan's investment in Chase account?

A) $16,000 decrease.
B) $60,000 decrease.
C) $64,000 increase.
D) $64,000 decrease.
E) No adjustment is necessary.