Greg Financial Services Invested $15,000 to Acquire 3,750 Shares of Mitt

Greg Financial Services invested $15,000 to acquire 3,750 shares of Mitt Investments on March 15, 2012. This investment represents less than 20% of the investee's voting stock. On May 7, 2016, Greg Financial Services sells 1,750 shares for $12,250. Which of the following will be the correct journal entry for this transaction?

A) $$\begin{array} { | c | r | r | } \hline \text { Gain on Disposal } & 12,250 & \\\hline \text { Long-term Investments-Available-for-Sale } & & 12,250 \\\hline\end{array}$$
B) $$\begin{array} { | c | r | r | } \hline \text { Cash } & 12,250 & \\\hline \text { Gain on Disposal } & & 12,250 \\\hline\end{array}$$
C) $$\begin{array} { | l | r | r | } \hline \text { Cash } & 12,250 & \\\hline \text { Long-term Investments-Available-for-Sale } & & 7,000 \\\hline \text { Gain on Disposal } & & 5,250 \\\hline\end{array}$$
D) $$\begin{array} { | c | r | r | } \hline \text { Cash } & 12,250 & \\\hline \text { Long-term Investments-Available-for-Sale } & & 12,250 \\\hline\end{array}$$