Multiple Choice
MotorCity, Inc. purchased 40,000 shares of Shaw common stock for $232,000. This represents 40% of the outstanding stock. The entry to record the transaction includes a:
A) Debit to Short-Term Investment-AFS for $232,000.
B) Debit to Long-Term Investments for $92,800.
C) Debit to Long-Term Investments for $232,000.
D) Debit to Long-Term Investments-HTM for $232,000.
E) Credit to Long-Term Investments for $92,800.
Correct Answer:
Verified
Correct Answer:
Verified
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