Company Z sells its investment in Company W for \$900,000. The book value of the investment is \$1,000,000. What is the journal entry for the sale?

• A. Debit Cash \$900,000, Debit Loss on Sale \$100,000, Credit Investment in Company W \$1,000,000.
• B. Debit Cash \$900,000, Credit Investment in Company W \$900,000.
• C. Debit Cash \$1,000,000, Credit Investment in Company W \$900,000, Credit Gain on Sale \$100,000.
• D. Debit Cash \$1,000,000, Credit Investment in Company W \$1,000,000.

Answer: (A)