On January 4,Year 1,Larsen Corp Purchased 10,000 Shares of Warner

On January 4,Year 1,Larsen Corp purchased 10,000 shares of Warner Corp for $119,000 plus a broker's fee of $2,000.Warner Corp has 50,000 common shares outstanding and it is presumed the Larsen Corp will have a significant influence over Warner Corp.During Year 1 and Year 2,Warner Corp declared and paid cash dividends of $0.85 per share.Warner Corp's profit was $72,000 and $67,000 for Year 1 and year 2,respectively.The January 12,Year 3 entry to record the sale of 5,000 shares of Warner Corp for $65,000 should be

A)
$\begin{array}{|l|r|r|}\hline \text { Cash } & 65,000 \\\hline \text { Investment Income } & & 16,600 \\\hline \text { Investment in Associate - Warner } & 48,400 & \\\hline\end{array}$
B)
$\begin{array}{|l|r|r|}\hline \text { Cash } & 65,000 \\\hline \text { Investment Loss } & & 900 \\\hline \text { Investment in Associate - Warner } & 65,900 & \\\hline\end{array}$
C)
$\begin{array}{|l|r|r|}\hline \text { Cash } & 65,00 \mathrm{~d} \\\hline \text { Investment Income } & & 100 \\\hline \text { Investment in Associate - Warner } & 64,900 \\\hline\end{array}$
D)
$\begin{array}{|l|r|r|}\hline \text { Cash } & 65,000 \\\hline \text { Investment Income } & & 4,500 \\\hline \text { Investment in Associate - Warner } & 60,500 & \\\hline\end{array}$
E)
$\begin{array}{|l|r|r|}\hline \text { Cash } & 65,000 \\\hline \text { Investment Loss } & & 56,000 \\\hline \text { Investment in Associate - Warner } & 121,000 & \\\hline\end{array}$