Use This Information to Answer the Following Question The Entry to Record the Purchase of the Wayne Corporation

question 8

Multiple Choice

Use this information to answer the following question.These facts concern the long-term stock investments of Webster Corporation: $\begin{array}{ll}\text { June 1, } 2012 & \text { Pand cash for the followng long-term investments: } 5,000 \text { shares Wayne } \\& \text { Corporation common stock (representing } 5 \text { percent of outstanding stock) at } \\& \$ 40 \text { per share; } 3,000 \text { shares Upshur Corporation common stock (representing } \\&\text { percent of outstanding stock) at } \$ 24 \text { per share. } \\\text { Dec. } 31,2012 & \text { Quoted market prices at year end: Wayne common stock, } \$ 35 \text {; Upshur }\\& \begin{array}{l}\text { common stock, } \$ 27 .\end{array} \\\text { April 1, } 2013 & \begin{array}{l}\text { A change in policy required the sale of 1,000 shares of Wayne Corporation } \\\text { common stock at } \$ 38 .\end{array} \\\text { July 1, 2013 } & \begin{array}{l}\text { Received a cash dividend from Upshur Corporation equal to } \$ .30 \text { per share. }\end{array} \\\text { Dec. 31, 2013 } & \begin{array}{l}\text { Quoted market prices at year end: Wayne common stock, } \$ 39 \text {; Ushur } \\\text { common stock } \$ 22 .\end{array}\end{array}$ The entry to record the purchase of the Wayne Corporation common stock is:

• A) Long-Term Investments 272,000
• Cash 272,000
• B) Long-Term Investments 120,000
• Cash 120,000
• C) Long-Term Investments 72,000
• Cash 72,000
• D) Long-Term Investments 200,000
• Cash 200,000

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Definitions:

Factors Of Production

The assets utilized in creating goods and services, encompassing land, work, money, and business initiative.

Income Paid

The total earnings received by individuals or entities for their labor, investment, or property use.

Markets For Goods And Services

Venues where buyers and sellers exchange goods and services, including physical marketplaces and online platforms.

Markets For Factors Of Production

The markets where services of the factors of production (namely labor, capital, and land) are bought and sold.