Westbrook Financial Services, Inc $$\begin{array} { | l | r | r | } \hline \text { Loss on Disposal } & 12,250 & \\\hline \text { Equity Investments } & & 12,250 \\\hline\end{array}$$

Westbrook Financial Services, Inc. invested $15,000 to acquire 7250 shares of Cloud Investments, Inc. on March 15, 2015. This investment represents less than 20% of the investee's voting stock. On May 7, 2018, Westbrook Financial Services, Inc. sells 2250 shares for $12,250. Which of the following will be the correct journal entry for the May 7, 2018 transaction? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

A) $$\begin{array} { | l | r | r | } \hline \text { Loss on Disposal } & 12,250 & \\\hline \text { Equity Investments } & & 12,250 \\\hline\end{array}$$
B) $$\begin{array} { | l | r | r | } \hline \text { Cash } & 12,250 & \\\hline \text { Gain on Disposal } & & 12,250 \\\hline\end{array}$$
C) $$\begin{array} { | l | r | r | } \hline \text { Cash } & 12,250 & \\\hline \text { Equity Investments } & & 4657.5 \\\hline \text { Gain on Disposal } & & 7592.5 \\\hline\end{array}$$
D) $$\begin{array} { | l | r | r | } \hline \text { Cash } & 12,250 & \\\hline \text { Equity Investments } & & 12,250 \\\hline\end{array}$$