Use this information to answer the following question. These facts concern the long-term stock investments of DeBord Corporation: June 1, 2014 Paid cash for the following long-term investments: 5,000 shares Vanhook Corporation common stock (representing 5 percent of outstanding stock) at $40 per share; 3,000 shares Shust Corporation common stock (representing 3 percent of outstanding stock) at
$24 per share. Dec. 31, 2014 Quoted market prices at year end: Vanhook common stock, $35; Shust common stock, $27. April 1, 2015 A change in policy required the sale of 1,000 shares of Vanhook Corporation common stock at $38. July 1, 2015 Received a cash dividend from Shust Corporation equal to $.30 per share. Dec. 31, 2015 Quoted market prices at year end: Vanhook common stock, $39; Shust common stock, $22. The entry to record the sale of 1,000 shares of Vanhook Corporation common stock is:
A) Long-Term Investments 38,000 Cash 38,000
B) Long-Term Investments 38,000 Allowance to Adjust Long-Term Investments to Market 38,000
C) Allowance to Adjust Long-Term Investments to Market 38,000 Cash 38,000
D) Cash 38,000 Loss on Sale of Investments 2,000Long-Term Investments 40,000
D
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What will be an ideal response?
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