During 2018, Arnold Corporation Purchased $6 B) C) D)

During 2018, Arnold Corporation purchased $6.2 million of 10 year municipal bonds at face value. On December 31, 2020, the bonds had a market value of $6,900,000. Arnold reclassified the bonds from held-to-maturity to trading securities. Arnold's balance sheet and income statement for December 31, 2020 will reflect which of the following?

A) $$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Investment in } \\\text { municipal bonds }\end{array} & \begin{array} { c } \text { Income statement } \\\text { gain on investments }\end{array} \\\hline \$ 6,200,000 & \$ 0 \\\hline\end{array}$$
B) $$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Investment in } \\\text { municipal bonds }\end{array} & \begin{array} { c } \text { Income statement } \\\text { Unrealized gain on } \\\text { investments }\end{array} \\\hline \$ 6,200,000 & \$ 700,000 \\\hline\end{array}$$
C) $$\begin{array} { | c | c | } \hline\begin{array} { c } \text { Investment in } \\\text { municipal bonds }\end{array} & \begin{array} { c } \text { Income statement } \\\text { gain on investments }\end{array} \\\hline \$ 6,900,000 & \$ 0 \\\hline\end{array}$$
D) $$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Investment in } \\\text { municipal bonds }\end{array} & \begin{array} { c } \text { Income statement } \\\text { Unrealized gain on } \\\text { investments }\end{array} \\\hline \$ 6,900,000 & \$ 700,000 \\\hline\end{array}$$