An Analysis of Korman Corporation's Investment in Equity Securities Account $\begin{array} { | l | r | } \hline \text { Debit entries } & \$ 160,000 \\\hline \text { Credit entries } & 240,000 \\\hline\end{array}$

An analysis of Korman Corporation's Investment in Equity Securities account during 2014 disclosed the following:
$\begin{array} { | l | r | } \hline \text { Debit entries } & \$ 160,000 \\\hline \text { Credit entries } & 240,000 \\\hline\end{array}$
Korman 's 2014 income statement included a $40,000 gain on sale of equity securities and $30,000 dividend income from equity securities. All payments and proceeds relating to equity securities transactions were in cash.

-How should the transactions involving equity securities be classified in Korman's statement of cash flows for 2014?

A) The purchase of equity securities, sales of equity securities, and receipt of dividends are all classified as investing activities.
B) The purchase and the sale of equity securities are classified as investing activities; the receipt of dividends is classified as an operating or investing activity.
C) The purchase of equity securities is classified as an investing activity; the sale of equity securities is classified as a financing activity; the receipt of dividends is classified as an operating or investing activity.
D) The purchase and the sale of equity securities are classified as investing activities; the receipt of dividends is classified as a financing activity.