B is corrent. $2,750 had been a deduction of other comprehensive income in prior years. When the securities are sold, the loss will be included in net income, so the $2,750 must be added back to other comprehensive income to avoid taking the loss twice.
A is incorrect because it is not net of tax. Other comprehensive income items should be shown net of tax.
C is incorrect because ($3,575) is what is included in net income when the securities are sold.
D is incorrect because deducting the $2,750 would mean that the loss is deducted three times, once in net income upon sale of the securities and twice in other comprehensive income.
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