On January 1, 2022, Max Company purchased

9,000

shares of Engel common stock at

$40

per share. Max owns 3% of the outstanding shares with insignificant influence. On June 1, 2022, Engel declares and distributes a cash dividend of $0.50 per share. On December 31, 2022, the market price of Engel's stock is

$45

per share. On February 1, 2023, the Engel's stock is sold for

$50

per share. What is the journal entry on February 1, 2023 for the sale of the stock?

Question content area bottom

Part 1

A.a debit to cash for

$450,000;

credit to Investment in Equity Securities for

$450,000.

B.a debit to cash for

$450,000;

credit to Investment in Equity Securities for

$360,000

and credit to Gain on Sale of Equity Securities for

$90,000.

C.a debit to cash for

$450,000;

credit to Investment in Equity Securities for

$405,000

and credit to Gain on Sale of Equity Securities for

$45,000.

D.a debit to cash for

$360,000

and debit to Loss on Sale of Equity Securities for

$90,000;

credit to Investment in Equity Securities for

$450,000.