Table 16-10
on September 1, 2017, Jacob Ltd B) C)

Table 16-10
On September 1, 2017, Jacob Ltd. purchased 100,000 common shares for a 20% interest in BlueSky Drilling Corporation for $15 per share, and paid a $7,000 brokerage commission for the purchase. Jacob Ltd. intends to hold this investment for several years and does not have significant influence over BlueSky Drilling. The market value of the BlueSky Drilling shares at December 31, 2017, is $19 per share. On February 15, 2018 BlueSky Drilling distributed a total dividend to its' shareholders of $50,000. Jacob Ltd. sold one-half of the shares on June 30, 2018 for $16 per share.
-Refer to Table 16-10.Which of the following is the correct journal entry on June 30,2018 to record the sale of shares?

A) $$\begin{array} { | l | r | l | } \hline \text { Cash } & 800,000 & \\\hline \text { Loss on Sale of Investment } & 145,000 & \\\hline \begin{array} { l } \text { Investment in BlueSky Drilling Common } \\\text { Shares }\end{array} & &945,000 \\\hline\end{array}$$
B) $$\begin{array} { | c | r | r | } \hline \text { Cash } & 800,000 & \\\hline \text { Loss on Sale of Long-Term Investments } & 150,000 & \\\hline \text { Fair-Value Valuation Allowance } & & 200,000 \\\hline \text { Long-Term Investments } & & 750,000 \\\hline\end{array}$$
C) $$\begin{array} { | c | r | r | } \hline \text { Cash } & 800,000 & \\\hline \text { Loss on Sale of Short-Term Investments } & 150,000 & \\\hline \text { Fair-Value Valuation Allowance } & & 200,000 \\\hline \text { Short-Term Investments } & & 750,000 \\\hline\end{array}$$
D) $$\begin{array} { | l | r | r | } \hline \text { Cash } & 800,000 & \\\hline \text { Loss on Sale of Long-Term Investments } & 145,000 & \\\hline \text { Long-Term Investments } & & 945,000 \\\hline\end{array}$$