Dorchester Corporation purchased one thousand shares of Winchester Corporation stock in 2006 for $800 per share and classified the investment as securities available for sale. Winchester's market value was $400 per share on December 31, 2007, and $300 on December 31, 2008. During 2009, Dorchester sold all of its Winchester stock at $350 per share. On its 2009 income statement, Dorchester would report:
A. A realized gain of $50,000.
B. A recognition of unrealized losses of $400,000.
C. A loss on the sale of investments of $450,000.
D. A trading gain of $50,000 and an unrealized loss of $500,000.
E. None of the above is correct.