On January 4, 2021, Mason Co. purchased 40,000 shares (40%) of the common stock of Hefly Corp., paying $560,000. At that time, the book value and fair value of Heflys net assets was $1,400,000. The investment gave Mason the ability to exercise significant influence over the operations of Hefly. During 2021, Hefly reported income of $150,000 and paid dividends of $40,000. On January 2, 2022, Mason sold 10,000 shares for $150,000.

What is the appropriate journal entry to record the sale of the 10,000 shares?

A)	Cash	150,000
	Investment in Hefly		150,000
B)	Cash	150,000
	Investment in Hefly		130,000
	Gain on sale of investment		20,000
C)	Cash	150,000
	Loss on sale of investment	1,000
	Investment in Hefly		151,000
D)	Cash	150,000
	Investment in Hefly		149,000
	Gain on sale of investment		1,000
E)	Cash	150,000
	Loss on sale of investment	10,000
	Investment in Hefly		160,000