In an IPO on May 1,2012,Timmy Hilfigure Purchased 1,000 Shares

Multiple Choice

In an IPO on May 1,2012,Timmy Hilfigure purchased 1,000 shares of Abner Crummie,Inc.for $5,000.On April 30,2018,Timmy Hilfigure sold the 1,000 shares for $8,000 to Ralph Loring.What is the effect of the sale on April 30,2018?

A) Abner Crummie,Inc.will record a $3,000 loss.
B) Abner Crummie,Inc.will record a $3,000 gain.
C) Abner Crummie,Inc.will not be directly affected by this transaction.
D) Abner Crummie,Inc.will record a decrease in Cash of $8,000.