Perdue Company Had the Following Transactions Pertaining to Stock Investments

question 25

Multiple Choice

Perdue Company had the following transactions pertaining to stock investments: - February 1, Purchased 3,000 shares of Hudson Company (10% ownership) at the market price of $17 per share.
- June 1, Received cash dividends of $6,000 on Hudson Company stock.
- October 1, Sold 3,000 shares of Hudson stock for $54,000.
The entry to record the sale of the stock would include a:

• A) debit to Long-Term Investment for $51,000.
• B) credit to Long-Term Investment for $51,000.
• C) debit to Gain on Sale of Investment $3,000.
• D) debit to Loss on Sale of Investment $3,000.

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Definitions:

Law Eliminating Holidays

A hypothetical regulation that would remove public holidays from legal recognition, potentially affecting work schedules and compensation.

Leisure

Time spent away from business, work, job hunting, domestic chores, and education, as well as necessary activities such as eating and sleeping.

GDP

Gross Domestic Product is the aggregate value, in terms of money or market price, of all end products and services generated within the confines of a country during a certain period.

Socioeconomic Variables

Characteristics that define the social and economic factors of individuals or groups, such as income, education, and occupation.