On October 1 of Last Year, Hand Tools Corp

Multiple Choice

On October 1 of last year, Hand Tools Corp. purchased 1,500 shares of the Bindo Bank for $72,000 as a trading investment. At year end, December 31, the fair value of these shares was $75,000. On February 1 of this year, Hand Tools sold all these shares for $73,000. The realized gain (loss) that Hand Tools will report this year is

A) a gain of $2,000.
B) a gain of $1,000.
C) a loss of $1,000.
D) a loss of $2,000.