Use the Following Information to Answer Questions

Multiple Choice

Use the following information to answer questions
Bayne Inc.bought bonds at a cost of $12,000 on March 1, 2011.At the end of the first quarter, March 31, Waba prepared financial statements and the bonds had a market value of $12,800.Bayne sold the bonds for $12,100 on May 18 before receiving any interest for them.
-On their second quarter financial statements prepared for the period ending June 30 Bayne should have recognized a) :

A) $700 realized loss.
B) $300 realized loss.
C) $300 realized gain and a $400 unrealized gain.
D) $12,100 cash.