Lockwood Corporations trading portfolio at the end of the year is as follows:

Security Cost Fair Value

Common Stock C $10,000 $12,000

Common Stock D 8,000 5,000

$18,000 $17,000

Lockwood subsequently sells Stock C for $12,000. What entry is made to record the sale?

a. Cash....................................................................................... 12,000

Stock Investments........................................................ 12,000

b. Cash....................................................................................... 12,000

Fair Value Adjustment Trading..................................... 2,000

Stock Investments........................................................ 10,000

c. Cash....................................................................................... 12,000

Stock Investments........................................................ 10,000

Gain on Sale of Stock Investments.............................. 2,000

d. Cash....................................................................................... 12,000

Stock Investments........................................................ 6,000

Gain on Sale of Stock Investments.............................. 6,000