On December 20, 2016, a company pays $40,000 for a stock, classified as a trading security. On December 31, 2016, the companys year-end, the stock has a market value of $38,000. The company sells the stock in 2017 for $43,000. On its income statement, the company reports:

a: no gain or loss in 2016, and gain of $5,000 in 2017

b. A gain of $3,000 in 2016, and no gain or loss in 2017

c.No gain or loss in 2016, and gain of 3,000 in 2017.

d. A loss of $2,000 in 2016, and a gain of $5,000 in 2017.