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What Is the Appropriate Journal Entry to Record the Sale  Cash800,000 Investment in Thomas 800,000\begin{array}{llr} \text { Cash} &800,000\\ \text { Investment in Thomas } &&800,000\\\end{array}

Question 52

Multiple Choice

What is the appropriate journal entry to record the sale of the 15,000 shares?
A.
 Cash800,000 Investment in Thomas 800,000\begin{array}{llr} \text { Cash} &800,000\\ \text { Investment in Thomas } &&800,000\\\end{array}

B.
 Cash 800,000 Investment in Thomas 780,000 Gain on sale of investment20,000\begin{array}{llr} \text { Cash } &800,000\\ \text { Investment in Thomas } &&780,000\\ \text { Gain on sale of investment} &&20,000\end{array}


C.
 Cash800,000 Loss on investment 12,000 Investment in Thomas 812,000\begin{array}{llr} \text { Cash} &800,000\\ \text { Loss on investment } &12,000\\ \text { Investment in Thomas } &&812,000\end{array}


D.
 Cash800,000 Investment in Thomas790,000 Gain on sale of investment 10,000\begin{array}{llr} \text { Cash} &800,000\\ \text { Investment in Thomas} &&790,000\\ \text { Gain on sale of investment } &&10,000\end{array}

E.
 Cash800,000 Loss on investment15,000 Investment in Thomas815,000\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.

Correct Answer:

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