Company A sells its investment in Company B for \$1,500,000. The book value of the investment is \$1,200,000. What is the journal entry for the sale?

• A. Debit Cash \$1,500,000, Credit Investment in Company B \$1,200,000, Credit Gain on Sale \$300,000.
• B. Debit Cash \$1,500,000, Credit Investment in Company B \$1,500,000.
• C. Debit Cash \$1,200,000, Credit Investment in Company B \$1,500,000, Debit Loss on Sale \$300,000.
• D. Debit Cash \$1,200,000, Credit Investment in Company B \$1,200,000.

Answer: (A)