Mike,a Dealer in Securities and Calendar-Year Taxpayer,purchased a Security for Inventory

Mike,a dealer in securities and calendar-year taxpayer,purchased a security for inventory on November 18,2012 for $15,000.The FMV on December 31,2012 was $16,000.The security was sold on December 19,2013 for $16,500.These transactions result in

A) $0 ordinary income in 2012; $1,500 ordinary income in 2013.
B) $0 ordinary income in 2012; $1,500 LTCG in 2013.
C) $1,000 ordinary income in 2012; $500 LTCG in 2013.
D) $1,000 ordinary income in 2012; $500 ordinary income in 2013.