On December 31 of the Prior Year,Anna Company Owned 1,000

Multiple Choice

On December 31 of the prior year,Anna Company owned 1,000 shares of Egert Company common stock with a cost of $12,000 and a fair value of $11,000.This is the only investment held by Anna.On June 1 of the current year,Anna sells 500 of the Egert company shares for $7,200.On December 31 of the current year,the fair value of Egert Company common stock was $13 per share.Anna made no other purchases or sales of investments during the current year.The journal entry to record the sale of the shares on June 1 is:

A) Debit Cash,$7,200; Credit Stock Investments - Egert Company,$6,000; Credit Unrealized Gain - Income,$1,200.Combined financial statements
B) Debit Cash,$7,200; Credit Stock Investments - Egert Company,$5,500; Credit Gain on Sale of Stock Investments,$1,700.
C) Debit Cash,$7,200; Credit Stock Investments - Egert Company,$6,000; Credit Gain on Sale of Stock Investments,$1,200.
D) Debit Cash,$7,200; Debit Unrealized Gain - Income,$500; Credit Stock Investments - Egert Company,$5,000; Credit Gain on Sale of Stock Investments,$1,700.
E) Debit Cash,$7,200; Credit Unrealized Loss - Income,$500; Credit Stock Investments - Egert Company,$6,000; Credit Gain on Sale of Stock Investments,$700.