Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

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McKinley, Inc., owns 100 percent of Jackson Company's 45,000 voting shares.On June 30, McKinley's internal accounting records show a $192,000 equity method adjusted balance for its investment in Jackson.McKinley sells 15,000 of its Jackson shares on the open market for $80,000 on June 30.How should McKinley record the excess of the sale proceeds over its carrying amount for the shares a.Reduce goodwill by $64,000.
B)Recognize a gain on sale for $ 16,000.
C)Increase its additional paid-in capital by $16,000.
D)Recognize a revaluation gain on its remaining shares of $48,000.