On January 1, 2008, Alton Co

On January 1, 2008, Alton Co. purchased $100,000 of 10%, Olson, Inc. bonds with interest payable on July 1 and January 1 for $107,000. On February 1, 2008, Alton purchased $100,000 of 12%, Ehrlich Co. bonds with interest payable on August 1 and February 1 for $95,000. Alton classifies the Olson and Ehrlich bonds as trading debt securities. On December 31, 2008, the fair value of the Olson and Ehrlich bonds are $110,000 and $94,000, respectively. At December, 2008, what adjusting entry should be made by Alton?

A) No entry should be made.
B)
C)
D)