On December 1, 20X8, Winston Corporation Acquired 100 Shares of Linked

Multiple Choice

On December 1, 20X8, Winston Corporation acquired 100 shares of Linked Corporation at a cost of $40 per share. Winston classifies them as available-for-sale securities. On this same date, it decides to hedge against a possible decline in the value of the securities by purchasing, at a cost of $250, an at-the-money put option to sell the 100 shares at $40 per share. The option expires on February 20, 20X9. Selected information concerning the fair values of the investment and the options follow:
Assume that Winston exercises the put option and sells Linked shares on February 20, 20X9.
-Based on the preceding information,which of the following journal entries will be made on February 20,20X9?

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C)
D)