Use the Following Information for Questions

question 1

Multiple Choice

Use the following information for questions
On January 1, 2022, Warner Inc.purchased 3.5%, $50,000 face value Jackson Corp.bonds at face value.Interest is payable semi-annually on July 1 and January 1.The bonds are classified as trading investments.The bonds were sold on July 2, 2022 for $53,000.
-Warner's entry to record the sale on July 2, after the July 1 interest was received and recorded, would include a

• A)debit to Cash for $53,875.
• B)credit to Interest Income for $875.
• C)credit to Realized Gain on Trading Investments for $3,000.
• D)credit to Trading Investments for $53,000.

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Definitions:

Output

The total amount of goods and services produced by an economy, a sector, or a company during a specific period.

Shutdown Point

The level of operation at which a firm is not generating enough revenue to cover its variable costs, making it economically viable to cease production.

Output

The total quantity of goods or services produced by a business, industry, or economy within a specific period.

Peak Efficiency

The state in which an entity or system is operating at its maximum potential and efficiency, without waste of resources.