After acquiring the additional shares, what adjustment is needed for Ryan's investment in Chase account?
A) $70,000 increase.
B) $70,000 decrease.
C) $12,188 decrease.
D) $12,188 increase.
E) No adjustment is necessary.

Question

Quizplus · Accepted Answer

To calculate the new value of Ryan's investment in Chase account, we need to subtract the amount paid for the additional shares from the previous investment value and then add the new investment value.

Previous investment value = 600,000 
Amount paid for additional shares = 238,500 
New investment value = 300,000

New investment value = 600,000 - 238,500 + 300,000 = 661,500

Therefore, Ryan's investment in Chase account needs to be adjusted by an increase of $12,188 (661,500 - 600,000).

After Acquiring the Additional Shares, What Adjustment Is Needed for Ryan's