Table 16-8 On July 15, 2017, Sanders Ltd. Purchased 5,000 Common Shares

Table 16-8
On July 15, 2017, Sanders Ltd. purchased 5,000 common shares in Signet Mining Corporation for $32 per share and paid a $800 brokerage commission for the purchase. Sanders intends to hold this investment for less than a year and classifies it as a Short-Term Investment. The market value of the shares at December 31, 2017, is $29 per share. On February 15, 2018 Signet Mining announced a 2 for 1 stock split. Sanders sold one-half of the shares on March 31, 2018 for $15 per share.
-Refer to Table 16-8.Which of the following is the correct accounting treatment on December 31,2017?

A) No accounting entry is required as no sale took place.
B) Debit the Fair-Value Valuation Allowance for $15,000.
C) Credit Short-term Investments for $15,000.
D) Debit Unrealized Loss on Fair-Value Adjustment for $15,000.