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WXC Incurred the Following Costs During 2015 to Purchase LXT

Question 76

Multiple Choice

WXC incurred the following costs during 2015 to purchase LXT shares: (a) 1,000 shares of LXT at $6 per share: January 1 payment. $2,000March 1 payment. 1,000May 1 payment.1,000July 1 payment. 1,000September 1 payment. 1,000(b)  Interest paid. 400 (c)  Brokerage fee paid.600(d)  Excise tax paid. 300\begin{array}{lll}\text {January 1 payment. }&\$2,000\\\text {March 1 payment. }&1,000\\\text {May 1 payment.}&1,000\\\text {July 1 payment. }&1,000\\\text {September 1 payment. }&1,000\\\text {(b) Interest paid. }&400\\\text { (c) Brokerage fee paid.}&600\\\text {(d) Excise tax paid. }&300\\\end{array} Assuming the cost method is used,WXC should record this 2015 investment at:


A) $6,000
B) $6,600
C) $6,900
D) $7,300

Correct Answer:

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