Alan company invests $500,000 in equity securities on April 30, 2016, and classifies them as trading securities. At December 31, 2016, the companys year-end, the securities have a fair value of $495,000. On February 1, 2017, the company sells the securities for $520,000. Which statement is true regarding how this information is reported in the company's financial statements?

a. The companies 2016 balance sheet reports the securities at $495,000, and gain of $20,000 is reported on the 2017 income statement.

b.The companys 2016 balance sheet reports the securities at $500,000 and no gain or loss appears in the 2016 financial statements.

c. The company 2016 balance sheet reports the securities at $500,000, and a loss of $5,000 is reported on the 2016 income statement.

d. The companys 2016 balance sheet reports the securities at $495,000, and a gain of $25,000 is reported on the 2017 income statement.