Landmark Corp. buys $350,000 of Schroeter Company's 8%, 5-year bonds payable at par value on September 1. Interest payments are made semiannually. Landmark plans to hold the bonds for the 5-year life. The journal entry to record the purchase should include:
A. A debit to Short-Term Investments-AFS $350,000.
B. A debit to Debt Investments-AFS $350,000.
C. A debit to Cash $350,000.
D. A debit to Short-Term Investments-Trading $350,000.
E. A debit to Debt Investments-HTM $350,000.
Answer: E
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