Blaine Company Had These Transactions Pertaining to Stock Investments: Feb

question 51

Multiple Choice

Blaine Company had these transactions pertaining to stock investments: Feb. 1 Purchased 2000 shares of Norton Company (10%) for $51000.
June 1 Received cash dividends of $2 per share on Horton stock.
Oct) 1 Sold 1200 shares of Horton stock for $33000 less brokerage fees of $600.
The entry to record the sale of the stock would include a

• A) debit to Cash for $32400.
• B) credit to Gain on Sale of Stock Investments for $1200.
• C) debit to Stock Investments for $30600.
• D) credit to Gain on Sale of Stock Investments for $1800.

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Definitions:

Oligopoly

An industry with just a few firms.

Perfect Competition

A market structure characterized by a large number of small firms, homogenous products, free entry and exit from the market, and full information availability, leading to no single firm influencing the market price.

Concentration Ratio

A metric used in economics to assess the degree of market concentration by measuring the market share of the largest firms within an industry.

Largest Firms

Companies that dominate their industries or markets, often characterized by significant revenue, global presence, and market influence.