On January 4, Year 1, Barber Company purchased 13,500 shares of Convell Company for $162,000 plus a broker's fee of $4,400. Convell Company has a total of 67,500 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 $123,000 and $118,000 for Year 1 and Year 2, respectively. The January 12, Year 3, entry to record Barber's sale of 8,100 shares of Convell Company stock, which represents 60% of Barber's total investment, for $109,350 cash should be:

Multiple Choice

Debit Cash $109,350; debit Loss on Sale of Investment $57,050; credit Long-Term Investments $166,400.

Debit Cash $109,350; debit Loss on Sale of Investment $20,250; credit Long-Term Investments $129,600.

Debit Cash $109,350; debit Loss on Sale of Investment $7,260; credit Long-Term Investments $116,610.

Debit Cash $109,350; credit Gain on Sale of Investment $9,510; credit Long-Term Investments $99,840.

Debit Cash $109,350; credit Gain on Sale of Investment $20,250; credit Long-Term Investments $89,100.