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)Cash800,000 Investment in Thomas 800,000B)Cash800,000 Investment in Thomas 780,000 Gain on sale of investment 20,000C)Cash800,000 Loss on investment12,000 Investment in Thomas 812,000D)Cash800,000 Investment in Thomas 790,000 Gain on sale of investment 10,000E)Cash800,000 Loss on sale
of investment15,000 Investment in Thomas 815,000
A. C Above.
B. E Above.
C. D Above.
D. A Above.
E. B Above.
Answer: E
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