Use the Following Information for Questions
Desmond Corporation Owns $£ 49,800$

question 28

Multiple Choice

Use the following information for questions
Desmond Corporation owns 3,000 of the 10,000 outstanding ordinary shares of Wetmore Corporation.During 2011, Wetmore earned £2,400,000 and paid cash dividends of £800,000.
-Nagen Company had these transactions pertaining to share investments:
Feb. 1 Purchased 3,000 shares of Horton Company (10\%) for $£ 49,800$ cash plus brokerage fees of $£ 1,200$ .
June 1 Received cash dividends of $£ 2$ per share on Horton shares.
Oct. 1 Sold 1,200 Horton shares for $£ 24,000$ less brokerage fees of $£ 600$ .
The entry to record the purchase of the Horton shares would include a

• A) debit to Share Investments for \( £ 49,800 \).
• B) credit to Cash for \( £ 49,800 \).
• C) debit to Share Investments for \( £ 51,000 \).
• D) debit to Investment Expense for \( £ 1,200 \).

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