Webb Company Owns 90% of Jones Company. The original balances presented for Jones and Web as of January 1, 2011 are as follows:
Shares outstanding 100,000
Book Value of Jones $1,200,000
Book Value of per share
Shares owned of Jones 90,000
Book Value of investment $1,080,000
Jones sells 20,000 shares of previously unissued shares of its common stock to outside parties for $10 per share.
What is the adjusted book value of Jones after the sale of the shares?
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