Ryan Company owns 80% of Chase Company. The original balances presented for Ryan and Chase as of January 1, 2011 are as follows:
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? Please provide detailed calculation.
a. $16,000 decrease.
b. $60,000 decrease.
c. $64,000 increase.
d. $64,000 decrease.
e. No adjustment is necessary.