At the End of Its First Year, the Trading Securities

At the end of its first year, the trading securities portfolio consisted of the following common stocks. $$\begin{array} { l r r } &\text {cost}&\text {fair value}\\\text { Atrium Corporation } & \$ 46,500 & \$ 50,000 \\\text { Barnes Inc. } & 60,000 & 58,000 \\\text { Cantor Corporation } & 80,000 & 76,400 \\& \underline { \$ 186,500 } & \underline { \underline { \$ 184,400 } }\end{array}$$ In the following year, the Barnes common stock is sold for cash proceeds of $57,000. The gain or loss to be recognized on the sale is a

A) gain of $1,200.
B) loss of $3,000.
C) Loss of $1,000.
D) loss of $2,000.