On January 4, Year 1, Barber Company purchased 10,500 shares of Convell Company for $129,200 . Convell Company has a total of 52,500 shares of common stock outstanding and it is presumed the Barber Company will have a significant influence over Convell. During each of the next two years, Convell declared and paid cash dividends of $0.75 per share, and its net income was $105,000 and $100,000 for Year 1 and Year 2, respectively. The January 2, Year 3, entry to record Barber's sale of 6300 shares of Convell Company stock, which represents 60% of Barber's total investment, for $85,050 cash, should be:

Debit Cash $85,050; debit Loss on Sale of Investment $7620; credit Equity Method Investments $92,670.

Debit Cash $85,050; debit Loss on Sale of Stock Investment $44,150; credit Equity Method Investments $129,200.

Debit Cash $85,050; debit Loss on Sale of Stock Investment $7530; credit Equity Method Investments $77,520.

Debit Cash $85,050; credit Gain on Sale of Stock Investment $15,750; credit Equity Method Investments $100,800.

Debit Cash $85,050; credit Gain on Sale of Stock Investment $15,750; credit Equity Method Investments $69,300.