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On January 4, Year 1, Barber Company purchased 8,000 shares of Convell Company for $96,000,...

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Accounting

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On January 4, Year 1, Barber Company purchased 8,000 shares of Convell Company for $96,000, Convell Company has a total of 40,000 shares of common stock outstanding and it is presumed the Barber Company will have a significant influence cver Corvell, During each of the next two years, Convell declared and paid cash dividends of $0.85 per share, and its net income was $90,000 and $85,000 for Year 1 and Year 2 , respectively. The January 2, Year 3, entry to record Borber's sale of 4,800 shares of Convell Company stock, which represents 60% of Barber's total investment, for $64,800 cash, should be: Multiple Ghoice Detat Cash 564,00 ; debit Loss on Sble of Stock livesiment 55800 , credit Equity Method investments 558,920 Debir Cash 564,800 ; debi Lost an Sale of frrvestruent 55,540; credit Equity Method inverstments 770,440 Debit Cash $64,600; credit Gain on Sale of Stock invesument 513,600 ; credit fiqu 1 Mcthed inwestments 551,200 Debit Cash 564800; credit Gain on Saie of Stock Ievestment 510,600 , credit Equity Method Investments 578,400

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