Webb Company Owns 90% of Jones Company

Multiple Choice

Webb Company owns 90% of Jones Company. The original balances presented for Jones and Webb as of January 1, 2011, are as follows:

Jones sells 20,000 shares of previously unissued shares of its common stock to outside parties for $10 per share.

What is the new percent ownership of Webb in Jones after the stock issuance?

A) 75%.
B) 90%.
C) 80%.
D) 64%.
E) 60%.