On June 15,2014,Bellows Corp

Multiple Choice

On June 15,2014,Bellows Corp.acquired 100 shares of Sonny,Inc.for $75 per share as a trading security.On December 17,2014,Bellows sold the stock for $115 per share.How would the company record this transaction?

A) Debit Cash for $11,500,credit Short-Term Investments-Trading for $7,500,and credit Gain on Sale of Short-Term Investments for $4,000.
B) Debit Cash for $11,500,credit Long-Term Investments-Trading for $7,500,and credit Gain on Sale of Long-Term Investments for $4,000.
C) Debit Cash for $11,500,credit Short-Term Investments-Trading for $7,500,and credit Fair Value Adjustment-Trading for $4,000.
D) Debit Cash for $11,500,credit Long-Term Investments-Trading for $7,500,and credit Fair Value Adjustment-Trading for $4,000.
E) Debit Fair Value Adjustment-Trading for $4,000 and credit Gain on Sale of Short-Term Investments for $4,000.