Herman Company Exchanged 400 Shares of Daily Company Common Stock $\begin{array} { l } \text { Equipment }&20,000\\ \text { Inve stment in Daily Co. Common Stock}&&20,000\\ \end{array}$

Herman Company exchanged 400 shares of Daily Company common stock, which Herman was holding as an investment, for equipment from West Company.The Daily Company common stock, which had been purchased by Herman for $50 per share, had a quoted market value of $58 per share at the date of exchange.The equipment had a recorded amount on West's books of $21,000.What journal entry should Herman make to record this exchange?

A) $\begin{array} { l } \text { Equipment }&20,000\\ \text { Inve stment in Daily Co. Common Stock}&&20,000\\ \end{array}$

B) $\begin{array} { l } \text { Equipment }&21,000\\ \text { Investment in Daily Co.Common Stock}&&20,000\\ \text {Gain on Disposal of Investment }&&1,000\\ \end{array}$

C) $\begin{array} { l } \text { Equipment }&21,000\\ \text { Loss on Disposal of Investment}&2,200\\ \text { Investment in Daily Co. Common Stock}&&23,200\\ \end{array}$

D) $\begin{array} { l } \text { Equipment}&23,200\\ \text {Investment in Daily Co. Common Stock }&&20,000\\ \text { Gain on Disposal of Investment}&&3,200\\\end{array}$