On January 4, Year 1, Barber Company purchased 8,500 shares of Convell Company for $104,400 . Convell Company has a total of 42,500 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 $93,000 and $88,000 for Year 1 and Year 2, respectively. The January 2, Year 3, entry to record Barber's sale of 5,100 shares of Convell Company stock, which represents 60% of Barber's total investment, for $68,850 cash, should be:

o Debit Cash $68,850; credit Gain on Sale of Stock Investment $12,750; credit Equity Method Investments $56,100. o Debit Cash $6 850; debit Loss on Sale of Stock Investment $35,550; credit Equity Method Investments $104,400. o Debit Cash $68,850; debit Loss on Sale of Investment $7,860; credit Equity Method Investments $76,710. o O Debit Cash $68,850; debit Loss on Sale of Stock Investment $6,210; credit Equity Method Investments $62,640. o Debit Cash $68,850; credit Gain on Sale of Stock Investment $12,750; credit Equity Method Investments $81,600