Gayton Corporation Purchased 1000 Shares of Smart Common Stock ($50 $\begin{array} { l l l } & \underline{ \text { Cost } }&& \underline{\text { Gain or Loss }} \\\end{array}$

Gayton Corporation purchased 1000 shares of Smart common stock ($50 par) at $80 per share as a short-term investment. The shares were subsequently sold at $78 per share. The cost of the securities purchased and gain or loss on the sale were $\begin{array} { l l l } & \underline{ \text { Cost } }&& \underline{\text { Gain or Loss }} \\\end{array}$
A) $\begin{array} { l l l } & \$ 50,000 & \$ 2,000 \text { gain } \\\end{array}$
B) $\begin{array} { l l l } & \$ 50,000 & \$ 2,000 \text { loss } \\\end{array}$
C) $\begin{array} { l l l } & \$ 80,000 & \$ 2,000 \text { gain } \\\end{array}$
D) $\begin{array} { l l l } & \$ 80,000 & \$ 2,000 \text { loss }\end{array}$