Purdue Company Had the Following Transactions Pertaining to Stock Investments

question 156

Multiple Choice

Purdue Company had the following transactions pertaining to stock investments: a.February 1,Purchased 3,000 shares of Hudson Company (10% ownership) at the market price of $17 per share.Purdue Company intends to keep the stock for more than one year and classifies the stock as available-for-sale.
B.June 1,Received cash dividends of $6,000 on Hudson Company stock.
C.October 1,Sold 3,000 shares of Hudson stock for $54,000.
The journal entry to record the purchase of the Hudson stock is:

• A)debit Equity-Method Investment for $51,000 and credit Cash for $51,000.
• B)debit Investment in Available-for-Sale Securities for $51,000 and credit Cash for $51,000.
• C)debit Cash for $51,000 and credit Common Stock for $51,000.
• D)debit Common Stock for $51,000 and credit Cash for $51,000.

Acknowledge the significance of self-esteem and belief in life’s meaning to personal happiness.

Comprehend the relationship between financial wellbeing and happiness.

Recognize the importance of achieving goals and social connections to happiness.

Understand and calculate total manufacturing costs.

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Definitions:

Diseconomies of Scale

Diseconomies of scale occur when a company or business grows so large that the costs per unit increase, opposite of economies of scale where costs decrease with increasing production.

Economic Growth

A rise in the output of goods and services within an economy over a specific time frame.

Employment Discrimination

The unfair or prejudicial treatment of individuals in the workplace based on race, gender, age, religion, nationality, or other non-merit factors.

Innovation

The act of converting a concept or innovation into a product or service that generates value or is something customers are willing to purchase.