On February 15, Jewel Company buys bonds of Marcelo Corp. for $200,110 cash. This debt investment is classified as available-for-sale securities. This is the company's first and only investment in available-for-sale securities. Jewel Company sells 40% of the Marcelo Corp. debt investment on November 17 of the current year for $102,200 cash. The entry to record this sale includes a:
A. Debit to Loss on Sale of Debt Investments for $22,156.
B. Debit to Cash for $80,044.
C. Credit to Debt Investments-AFS for $80,044.
D. Debit to Debt Investments-AFS for $80,044.
E. Credit to Loss on Sale of Debt Investments for $22,156.
Answer: C
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