The following information was obtained in an audit of the equity and debt investment portfolio account, carried at fair value through other comprehensive income, of Matthew Corporation as of December 31, 2022: Investee Company - Shares Cost Fair value John Enterprises* 100,000 P4,850,000 P5,050,000 Joseph Corporation* 125,000 5,900,000 5,725,000 *non-trading equity instruments Face value Cost Fair value Nathan, Inc.** P140,000 P147,000 P136,500 ** business model based on realizing fair value changes Transactions during the 2022 audit disclosed the following: On John Enterprises shares On September 4, 2022, the entity recorded a sale of 50,000 shares of John by a debit to "Cash" for its proceeds of P2,460,000, net of P40,000 transaction cost, and a credit to "Financial Asset - Fair Value through Other Comprehensive Income (FVOCI)" at a fair value of P2,540,000, net of P110,000 estimated transaction cost. The difference was recognized as Loss on disposal of equity investment". Moreover, the cumulative gain previously recognized in other comprehensive income on these shares sold amounting to P320,000 was closed to "Retained Earnings". On Joseph Corporation shares On December 31, 2022, you discovered that Joseph Corporation experienced a severe financial difficulty so that the fair value of its equity investment had fallen to P5,310,000. The client's accountant overlooked this transaction and reflected the financial asset at P5,725,000. On Nathan, Inc. bonds The entity's initial business model for its Nathan bonds was to collect contractual cash flows and to sell them in the open market. On December 31, 2022, it decided to adopt another business model of managing its financial asset and made the proper disclosure. However, the client's accountant failed to record the reclassification and the premium amortization of P2,000. The fair value of the financial asset, net of P2,500 estimated transaction cost, did not change throughout 2022. Based on your analysis

The correcting entry in your audit working paper related to the sale of 50,000 John shares would include: A. A debit to retained earnings by P320,000 B. A credit to loss on sale by P80,000 C. A debit to financial asset - FVOCI by P110,000 D. A credit to retained earnings by P199,000