D) $ 12,000. Question 16 (2 points) Frosty Ltd. exchanged 400 common shares of Grants Corp., which Frosty was holding as an investment, for new equipment from MwWiken Sales. The Grants Corp. common shares, which had been purchased by Frosty for $ 80 per share, had a quoted market value of $ 100 per share at the date of exchange. The equipment had a recorded amount on Milliken's books of $ 37,000, but the fair value was not available. The journal entry that Frosty should make to record this exchange is 37,000 Loss on Disposal of 3,000 Investment Investment in Lesotho Corp. 40,000 Common Shares 40,000 B) Equipment Investment in Lesotho Corp. A) Equipment 32,000 Common Shares