Smith Buys and Sells Securities,which It Typically Classifies as Available

Smith buys and sells securities,which it typically classifies as available for sale.On December 15,2016,Smith purchased $500,000 of Jones shares and elected the fair value option to account for the Jones investment.As of December 31,2016,the Jones shares had a fair value of $525,000.In the 2016 financial statements,Smith will report (ignore taxes) :

A) Investment income of $25,000 in its income statement.
B) Other comprehensive income of $25,000.
C) Accumulated other comprehensive income of $525,000.
D) An investment in Jones of $500,000.