Motor City, Inc. purchased 63,000 shares of Shaw common stock for $278,000. This represents 40% of the outstanding stock. The entry to record the transaction includes a:

A. Debit to Equity Method Investments -HTM for $278,000.
B. Debit to Short-Term Investment-AFS for $278,000.
C. Debit to Equity Method Investments for $278,000.
D. Credit to Equity Method Investments for $6,227,200.
E. Debit to Equity Method Investments for $6,227,200.


Answer: C

Business

You might also like to view...

In a short essay, list the six tasks that a researcher must typically perform in formulating a research design

What will be an ideal response?

Business

Sellars Inc manufactures widgets. On June 30, the company had 2,000 widgets in inventory. The company's policy is to maintain a widget ending inventory equal to 10% of next month's sales. In addition, each widget manufactured requires 6 minutes of assembly and inspecting time at a cost of $.25 per minute. The company expects the following sales activity for the third quarter of the year: July

25,000 units August 38,000 units September 30,000 units What is the projected direct labor cost for August? A) $55,800 B) $57,000 C) $61,500 D) $58,200

Business

Stressors can cause gastrointestinal system problems.

Answer the following statement true (T) or false (F)

Business

The use of only a portion or percentage of the available outlets in each geographic area for market exposure is called _____ distribution.

A. exclusive B. intensive C. selective D. patterned E. indirect

Business