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
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