REFERENCE: 01-10
on January 3,2018,Roberts Company Purchased 30% of the 100,000

REFERENCE: 01-10
On January 3,2018,Roberts Company purchased 30% of the 100,000 shares of common stock of Thomas Corporation,paying $1,500,000.There was no goodwill or other cost allocation associated with the investment.Roberts has significant influence over Thomas.During 2018,Thomas reported net income of $300,000 and paid dividends of $100,000.On January 4,2019,Roberts sold 15,000 shares for $800,000.
-What is the appropriate journal entry to record the sale of the 15,000 shares?
A.
$\begin{array}{llr} \text {Cash } &800,000\\ \text {Investment in Thomas } &&800,000\\\end{array}$

B.
$\begin{array}{llr} \text { Cash } &800,000\\ \text { Investment in Thomas} &&780,000\\ \text {Gain on sale of investment } &&20,000\end{array}$

C.
$\begin{array}{llr} \text {Cash } &800,000\\ \text { Loss on investment} &12,000\\ \text {Investment in Thomas } &&812,000\end{array}$

D.
$\begin{array}{llr} \text { Cash } &800,000\\ \text { Investment in Thomas} &&790,000\\ \text { Gain on sale of investment } &&10,000\end{array}$

E.
$\begin{array}{llr} \text { Cash } &800,000\\ \text {Loss on investment } &15,000\\ \text { Investment in Thomas } &&815,000\end{array}$

A) A Above.
B) B Above.
C) C Above.
D) D Above.
E) E Above.