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On January 4, 2009, Larsen Company purchased 5,000 shares of Warner Company for $59,500 plus a broker\'s fee of $1,000. Warner Company has a total of 25,000 shares of common stock outstanding and it is presumed the Larsen Company will have a significant influence over Warner. During each of the next two years, Warner declared and paid cash dividends of $0.85 per share, and its net income was $72,000 and $67,000 for 2009 and 2010, respectively. The January 12, 2011, entry to record the sale of 3,000 shares of Warner Company stock for $39,000 cash should be:

a)            Cash      39,000   

                Loss on Sale of Investments        60            

                Long-Term Investments                              38,940 

b)            Cash      39,000   

                Loss on Sale of Investments        21,500   

                Long–Term Investments                             60,500 

c)            Cash      39,000   

                Gain on Sale of Investments       8,750 

                Long–Term Investments                             30,250 

d)            Cash      39,000   

                Loss on Sale of Investments        8,200      

                Long-Term Investments                              47,280 

e)            Cash      39,000   

                Loss on Sale of Investments        8,880      

                Long-Term Investments                              47,880 

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