Smith buys and sells securities which it typically classifies as available for sale. On December 15, 2011, Smith purchased $500,000 of Jones shares, and elected the fair value option to account for the Jones investment. As of December 31, 2011, the Jones shares had a fair value of $525,000. In the 2011 financial statements, Smith will show (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.