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Webb Company Owns 90% of Jones Company

Question 41

Multiple Choice

Webb Company owns 90% of Jones Company. The original balances presented for Jones and Webb as of January 1, 2013, are as follows: Webb Company owns 90% of Jones Company. The original balances presented for Jones and Webb as of January 1, 2013, are as follows: Jones sells 20,000 shares of previously unissued shares of its common stock to outside parties for $10 per share. What adjustment is needed for Webb's investment in Jones account? A) $180,000 increase. B) $180,000 decrease. C) $30,000 increase. D) $30,000 decrease. E) No adjustment is necessary. Jones sells 20,000 shares of previously unissued shares of its common stock to outside parties for $10 per share.
What adjustment is needed for Webb's investment in Jones account?


A) $180,000 increase.
B) $180,000 decrease.
C) $30,000 increase.
D) $30,000 decrease.
E) No adjustment is necessary.

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