On January 1, 20X1, Cowpet, Inc. buys shares of P and Q, Inc. for $16,000.

By the end of 20X1, the stock had risen in value to $20,000.

Cowpet, Inc. had incorrectly reported these shares as trading securities when they should have been classified as available for sale (they had already held them for 12 months).

Which of the following is correct?

A) Reported net income was correctly reported but comprehensive income was too high by $4,000.

B) Reported net income was correctly reported but comprehensive income was too low by $4,000.

C) Reported net income was too high by $3,000 and comprehensive income was also too high by $4,000.

D) Reported net income was too high by $4,000 but comprehensive income was correctly stated.