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1Multiple Choice Question 57
Eck Corporation sells 250 shares of common stock being held as an
investment. The shares were acquired six months ago at a cost of $25 a
share. Eck sold the shares for $40 a share. The entry to record the sale
is
Cash 10,000
Gain on Sale of Stock Investments 3,750
Stock Investments 6,250
Stock Investments 10,000
Cash 10,000
Cash 10,000
Stock Investments 10,000
Cash 6,250
Loss on Sale of Stock Investments 3,750
Stock Investments 10,000
2Multiple Choice Question 45
On January 1, Talent Company purchased as a short-term investment
a $1,000, 8% bond for $1,050. The bond pays interest on January 1
and July 1. The bond is sold on October 1 for $1,200 plus accrued
interest. Interest has not been accrued since the last interest payment