Lessington Corporation purchases 4,000 shares of Gonzalez Company common stock for $150,000 as a long-term investment.The investment is classified as available-for-sale securities.Gonzalez has 500,000 shares of stock currently outstanding and the par value of the stock is $1 per share.Lessington's entry to record the purchase transaction would include a:

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When Lessington Corporation purchases 4,000 shares of Gonzalez Company common stock for $150,000 as a long-term investment classified as available-for-sale securities, the entry to record the purchase transaction would include a debit to Long-Term Investments-AFS for $150,000. This is because available-for-sale securities are recorded at their fair market value on the date of purchase, and the investment is considered a long-term asset. The other options are not appropriate entries for this transaction.

Lessington Corporation Purchases 4,000 Shares of Gonzalez Company Common Stock