Justin Company invested in 100 shares of Sara Company's common stock on January 2, 2004, and classified them as Trading Securities. Justin purchased the stock for $30 a share, and paid brokerage fees of $150. On October 20, 2004, Justin sells 60 shares of Sara stock for $28 per share, and paid brokerage fees of $100. The entry to record the sale on October 20 will involve a:

A) Debit to Loss on Sale of Investments of $120
B) Credit to Investment in Trading Securities of $1,860
C) Debit to Loss on Sale of Investments of $310
D) Credit to Investment in Trading Securities of $1,580
E) Debit to Loss on Sale of Investments of $200

Ans: C) Debit to Loss on Sale of Investments of $310

Business

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