In April, 2018, Norman Industries sold available - for - sale debt securities that cost $520,000 and received a check from its broker for $794,000. When the check was deposited, the accounting clerk debited cash and credited Available - for - Sale Debt Investments for the full ammount. The CFO questioned the entry in December, 2018. If this is an error, what is the proper correcting entry? (Tax rate is 35%.)

A. Realized Gain ---- 274,000

Available-for-sale Debt Investments ----------- 274,000

B. Available-for-Sale Debt Investments ---- 274,000

Income Tax Expense --------------------------- 95,900

Retained Earnings -----------------------------178,100

C. Available -for-Sale Debt Investments ---- 794,000

Realized Gain -----------------------------------------274,000

Retained Earnings - Prior Period Adj ------------520,000

D. Available -for-Sale Debt Investments -- 274,000

Realized Gain ----------------------------------- 274,000