Greg Financial Services Invested $15,000 to Acquire 3,750 Shares of Mitt

question 120

Multiple Choice

Greg Financial Services invested $15,000 to acquire 3,750 shares of Mitt Investments on March 15, 2012. This investment represents less than 20% of the investee's voting stock. On May 7, 2016, Greg Financial Services sells 1,750 shares for $12,250. When the transaction is recorded in a journal entry:

• A)Gain on Disposal will be credited.
• B)Long-term Investments-Available-for-Sale will be debited.
• C)Cash will be credited.
• D)Long-term Investments-Held-to-Maturity will be debited.

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Definitions:

Defense Mechanism

Psychological strategies used unconsciously by individuals to protect themselves from anxiety and to cope with reality or maintain self-image.

Projection

A defense mechanism where individuals attribute their own unacceptable thoughts, feelings, or motives to another person.

Repression

A defense mechanism where unpleasant thoughts, feelings, or desires are unconsciously pushed out of conscious awareness.

Psychosexual Stage

A concept in Freudian psychology that describes five stages of child development, each characterized by a different focus of libido (sexual drive).