At the End of Its First Year the Trading Securities

Multiple Choice

At the end of its first year the trading securities portfolio consisted of the following common stocks. $\begin{array}{lrr}& \underline{\text { Cost }}& \underline{\text { Fair Value }}\\\text { Atrium Corporation } & \$ 46,500 & \$ 50,000 \\\text { Barnes Inc. } & 60,000 & 58,000 \\\text { Cantor Corporation } & \underline{80,000}& \underline{76,400} \\& \underline{ \$ 186,500} & \underline{ \$ 184,400}\end{array}$
In the following year the Barnes common stock is sold for cash proceeds of $57000. The gain or loss to be recognized on the sale is a

A) gain of $1200.
B) loss of $3000.
C) Loss of $1000.
D) loss of $2000.