Kwon-Lee Sold 200 Shares Held in FNP Mutual Fund in 2017

Multiple Choice

Kwon-Lee sold 200 shares held in FNP Mutual Fund in 2017 for $22,500 and received a 1099-B to record the sale of the shares.Kwon-Lee's investment portfolio includes the following purchases of FNP Mutual Fund stock: $\begin{array}{rr}2005 & 100 \text { shares at } \$ 100 \text { per share } \\2009 & 50 \text { shares at } \$ 110 \text { per share } \\2013 & 125 \text { shares at } \$ 130 \text { per share } \\2013 & 75 \text { shares at } \$ 125 \text { per share }\end{array}$ Assuming Kwon-Lee uses the single category average cost method,he will recognize

A) no gain or loss.
B) $500 gain.
C) $1,000 loss.
D) $3,125 loss.