Middlebrook Financial Services, Inc invested $30,000 to acquire 6,250 shares of Mitt Investments, Inc on March 15, 2013

This investment represents less than 20% of the investee's voting stock. On May 7, 2017, Middlebrook Financial Services, Inc sells 2,000 shares for $21,250. Which of the following will be the correct journal entry for the May 1, 2017 transaction?

A)
Gain on Disposal 21,250
Long-term Investments-Available-for-Sale 21,250

B)
Cash 21,250
Gain on Disposal 21,250

C)
Cash 21,250
Long-term Investments-Available-for-Sale 9,600
Gain on Disposal 11,650

D)
Cash 21,250
Long-term Investments-Available-for-Sale 21,250


C .Total cost of 2,000 shares at the purchase time $9,600
(2,000 shares x $4.8 )
Total value of 2,000 shares at the selling time 21,250
Gain on Disposal $11,650

Business

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