company-z-sells-its-investment-in-company-w-for-900000-the-book-value-of-the-inv

Question

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?

Accepted Answer

Debit Cash $$900,000, Debit Loss on Sale 100$$,000, Credit Investment in Company W $1,000,000.

Answer

Debit Cash $$900,000, Credit Investment in Company W 900$$,000.

Answer

Debit Cash $$1,000,000, Credit Investment in Company W 900$$,000, Credit Gain on Sale $100,000.

Answer

Debit Cash $$1,000,000, Credit Investment in Company W 1$$,000,000.

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?