DeRozen Company purchases $1,000$ common shares $(40\%)$ of Tours of Toronto Incorporated as a long$-$term investment

for $$100,000$ cash on July $1.$ Tours of Toronto paid $$15,000$ in total cash dividends on November $1$ and reported net

income of $$150,000$ for the year ended December $31.$ Prepare DeRozen's journal entry to record the purchase of

common shares of Tours of Toronto.

Multiple Choice

Debit Stock Investments $$100,000$; credit Cash $$100,000.$

Debit Equity Method Investments $$15,000$; credit Cash $$15,000.$

Debit Cash $$100,000$; credit Equity Method Investments $$100,000.$

Debit Equity Method Investments $$100,000$; credit Cash $$100,000.$

Debit Stock Investments $$15,000$; credit Equity Method Investments $$15,000.$