Joe Donaldson Deposited $80,000 in a Bank Account, Purchased a Company

Joe Donaldson deposited $80,000 in a bank account, purchased a company for $60,000 cash (Building $40,000 and Inventory $20,000) , performed services for clients for $10,000 cash, purchased supplies for $5,000 cash, and paid utilities of $2,000 cash. The journal entry to record the purchase of the company includes a:

A) credit to Building for $40,000.
B) debit to Common Stock for $60,000.
C) debit to Inventory for $20,000.
D) credit to Cash for $40,000.