Allman,Inc. ,enters into a call option contract with Betts Investment Co.on January 2,2014.This contract gives Allman the option to purchase 1,000 shares of Upmann stock at $100 per share.The option expires on April 30,2014.Upmann shares are trading at $100 per share on January 2,2014,at which time Allman pays $200 for the call option.
-Using the information above,assume that the price of the Upmann shares has risen to $130 per share on March 31,2014,and the Hall is preparing financial statements for the quarter ending March 31.As regards this option,Hall,Inc. ,would report which of the following?
A) A $30,000 realized gain
B) A $30,000 unrealized gain
C) A deferred gain of $29,800
D) Nothing would be reported in the financial statements or the notes thereto.

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The Answer of Allman,Inc. ,enters into a call option contract with Betts Investment Co.on January 2,2014.This contract gives Allman the option to purchase 1,000 shares of Upmann stock at $100 per share.The option expires on April 30,2014.Upmann shares are trading at $100 per share on January 2,2014,at which time Allman pays $200 for the call option.
-Using the information above,assume that the price of the Upmann shares has risen to $130 per share on March 31,2014,and the Hall is preparing financial statements for the quarter ending March 31.As regards this option,Hall,Inc. ,would report which of the following?
A) A $30,000 realized gain
B) A $30,000 unrealized gain
C) A deferred gain of $29,800
D) Nothing would be reported in the financial statements or the notes thereto.