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MotorCity,Inc

Question 101

Multiple Choice

MotorCity,Inc.purchased 40,000 shares of Shaw common stock for $232,000.This represents 40% of the outstanding stock.The entry to record the transaction includes a:


A) Debit to Equity Method Investments for $92,800.
B) Debit to Equity Method Investments for $232,000.
C) Credit to Equity Method Investments for $92,800.
D) Debit to Equity Method Investments -HTM for $232,000.
E) Debit to Short-Term Investment-AFS for $232,000.

Correct Answer:

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