Answer:
a.
Explanation:
Cash (400*40) Â Â Â Â Â Â Â Dr.$16,000
Loss on sale of stock investments (400*40-400*600 Â Dr.$8,000
Stock Investments  (400*60)                      Cr.$24,000
As the stock was sold $20 below its purchase price therefore $20*400 will be recorded as loss on investments.The loss on investments and Cash will be debited and investments have decreased therefore credited.