What is the adjusted book value of Chase Company after the issuance of the shares?
A) $608,000.
B) $720,000.
C) $680,000.
D) $760,000.
E) $400,000.

Question

Quizplus · Accepted Answer

The adjusted book value of Chase Company can be calculated as follows: 
Total Assets = $900,000 
Liabilities = $240,000 
Shareholders' Equity = $660,000 ($420,000 + $120,000 + $120,000) 
Adding the proceeds from the shares issuance: $100,000 
New Shareholders' Equity = $760,000 
Therefore, the adjusted book value of Chase Company after the issuance of shares is $760,000. The correct answer is D.

What Is the Adjusted Book Value of Chase Company After