McGinn Company Purchased 10% of RJ Company's Common Stock During

McGinn Company purchased 10% of RJ Company's common stock during 2016 for $100,000. The 10% investment in RJ had a $90,000 fair value at the end of 2016 and a $105,000 fair value at the end of 2017. Which of the following statements is correct if McGinn classified the investment as a trading security and sold it at the beginning of 2018 for $102,000?

A) The 2018 realized loss reported on the income statement is $3,000.
B) The 2018 realized gain reported on the income statement is $2,000.
C) The 2018 unrealized gain reported on the income statement is $2,000.
D) The 2018 unrealized loss reported on the income statement is $3,000.