Rye Company Purchased 15% of Lena Company's Common Stock During

Multiple Choice

Rye Company purchased 15% of Lena Company's common stock during 20X2 for $150,000. The 15% investment in Lena had a $160,000 fair value at the end of 20X2 and a $140,000 fair value at the end of 20X3.
-Which of the following statements is correct if Rye classifies the investment as a trading security and sold it at the beginning of 20X4 for $148,000?

A) The 20X2 realized loss reported on the statement of earnings is $2,000.
B) The 20X4 realized gain reported on the statement of earnings is $8,000.
C) The 20X2 unrealized gain reported on the statement of earnings is $8,000.
D) The 20X2 unrealized loss reported on the statement of earnings is $2,000.