Problem: In Year 2, ABC Corp. acquired a 15% interest in XYZ, Inc., for $50,000. During the year, XYZ paid dividends of $10,000 and had net income of $30,000. ABC sold the shares of XYZ for $65,000 cash. What entry will ABC make to record the sale?
a. Cash 65,000
Gain on Sale 12,000
Investment in XYZ 53,000
b. Cash 65,000
Gain on Sale 9,000
Investment in XYZ 56,000
c. Cash 65,000
Additional Paid-in Capital 15,000
Investment in XYZ 50,000
d. Cash 65,000
Gain on Sale 15,000
Investment in XYZ 50,000