declared and paid cash dividends of $0.85 per share, and its net income was $90,000 and $85,000 for Year 1 and Year 2 , respectively. Multiple Choice Debit Cash $64,800; debit Loss on Sale of Stock Investment $5,880; credit Equity Method Investments $58,920. Debit Cash $64,800; debit Loss on Sale of Investment $5,640; credit Equity Method Investments $70,440. Debit Cash $64,800; credit Gain on Sale of Stock Investment $13,600; credit Equity Method Investments $51,200. Debit Cash $64,800; credit Gain on Sale of Stock Investment $13,600; credit Equity Method Investments $78,400. Debit Cash $64,800; debit Loss on Sale of Stock Investment $33,400; credit Equity Method Investments $96,000