ValleyView Company acquires common stock of Kansas Enterprises for $400,000 on November 1, 2013, and designates this investment as available-for-sale. The fair value of these shares is $435,000 on December 31, 2013 . ValleyView sells these shares on
August 15, 2014, for $480,000. (Refer to ValleyView.) The journal entry to record acquisition of securities available-for-sale on November 1, 2013 is:
a. Cash . . . . . . . . . . . . . . . . . . . . . .400,000
Marketable Securities . . . . . . . . . . . . . .400,000
b. Cash . . . . . . . . . . . . . . . . . . . . . .400,000
Common Stock . . . . . . . . . . . . . . . . . 400,000
c. Common Stock . . . . . . . . . . . . . 400,000
Cash . . . . . . . . . . . . . . . . . . . . . . . 400,000
d. Marketable Securities . . . . . . . . 400,000
Cash . . . . . . . . . . . . . . . . . . . . . . . 400,000
e. Marketable Securities . . . . . . . . 400,000
Common Stock . . . . . . . . . . . . . . . . . 400,000
Answer: D
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