At December 31, 2010, EI Greco Company Has an Investment

At December 31, 2010, EI Greco Company has an investment in 1,000 of the €1,000 8% bonds of Dublin Company with a carrying value of €1,060,500.The bonds, which mature on January 1, 2015, pay interest semiannually on July 1 and January 1.After collecting the interest on January 1, 2011, EI Greco sells the bonds for €1,110,000.EI Greco will recognize

A) an unrealized loss of €60,500.
B) a gain on the sale of debt investments for €49,500.
C) premium on bonds payable of €60,500.
D) a loss on the sale of debt investments of €110,000.