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.

---

Definitions:

ConWIP Cards

Cards that control the amount of work in a work center, aiding input–output control.

Limiting Work-In-Process

A production strategy that focuses on reducing the number of unfinished goods in the production process to improve efficiency and reduce waste.

Current Batch

Refers to the specific group of items or products being processed or manufactured at a given time.

Assignment Method

A mathematical approach used to allocate resources or tasks to destinations or jobs in the most efficient way possible.