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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?
Please provide detailed calculation.
A.
75%.
B.
90%.
C.
80%.
D.
64%.
E.
60%.
A.
75%.
Solution

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Webb Company owns 90 of Jones Company. The original balances presen.pdf

  • 1. 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? Please provide detailed calculation. A. 75%. B. 90%. C. 80%. D. 64%. E. 60%. A. 75%. Solution