Gray Financial Services, Inc invested $33,000 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, Gray Financial Services, Inc sells 2,500 shares for $19,250. When the journal entry to record the sale is made, ________.
A) Gain on Disposal will be credited
B) Long-term Investments-Available-for-Sale will be debited
C) Cash will be credited
D) Long-term Investments-Held-to-Maturity will be debited
A .Total value of 2,500 shares at the purchase time $13,200
(2,500 shares x $5.28*)
Total value of 2,500 shares at the selling time $19,250
Gain on Disposal $6,050
* Cost per share = $33,000 / 6,250= $5.28
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