company-a-sells-its-investment-in-company-b-for-1500000-the-book-value-of-the-in

Question

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?

Accepted Answer

Debit Cash $$1,500,000, Credit Investment in Company B 1$$,200,000, Credit Gain on Sale $300,000.

Answer

Debit Cash $$1,500,000, Credit Investment in Company B 1$$,500,000.

Answer

Debit Cash $$1,200,000, Credit Investment in Company B 1$$,500,000, Debit Loss on Sale $300,000.

Answer

Debit Cash $$1,200,000, Credit Investment in Company B 1$$,200,000.

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?