A company paid $37,800 cash to acquire stock investments with insignificant influence (with a par value of $38,325). The correct entry to record the purchase of the investment is:
A. Debit Cash $40,000; credit Stock Investments $40,000.
B. Debit Stock Investments $37,800; debit Investment Expense $525; credit Cash $38,325.
C. Debit Stock Investments $37,800; debit Loss on Investment $525; credit Cash $38,325.
D. Debit Stock Investments $37,800; credit Cash $37,800.
E. Debit Stock Investments $38,325; credit Cash $38,325.
Answer: D
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