Siegle Company exchanged 400 shares of Guinn Company ordinary shares, which Siegle was holding as an investment, for equipment from Mayo Company. The Guinn Company ordinary shares, which had been purchased by Siegle for $50 per share, had a quoted market value of $58 per share at the date of exchange. The equipment had a recorded amount on Mayo's books of $21,000. What journal entry should Siegle make to record this exchange?

Select one:

a. Equipment ........................................................................... 21,000
Loss on Disposal of Investment ............................................ 2,200
Investment in Guinn Co. Ordinary Shares ........................................................................... 23,200

b. Equipment ........................................................................... 21,000
Investment in Guinn Co. Ordinary Shares ........................................................................... 20,000
Gain on Disposal of Investment ................................... 1,000

c. Equipment 20,000 Investment in Guinn Co. Ordinary Shares 20,000

d. Equipment ........................................................................... 23,200
Investment in Guinn Co. Ordinary Shares ........................................................................... 20,000
Gain on Disposal of Investment ................................... 3,200