When a firm sells a trading security, it recognizes

Select one:

a. the average of the selling price and the book value as a gain or loss in measuring net income.

b. the difference between the selling price and the book value as a gain or loss in measuring net income.

c. amortizes any difference between the acquisition cost and maturity value as interest revenue over the life of the debt.

d. the difference between the selling price and the acquisition cost of the security as a realized gain or loss on the income statement.