At the end of the first year of operations, the total cost of the trading securities portfolio is $120,000. Total fair value is $115,000. The financial statements should show:

(a) a reduction of an asset of $5,000 and a realized loss of $5,000.

(b) a reduction of an asset of $5,000 and an unrealized loss of $5,000 in the stockholders’ equity section.

(c) a reduction of an asset of $5,000 in the current assets section and an unrealized loss of $5,000 in

“Other expenses and losses.”

(d) a reduction of an asset of $5,000 in the current assets section and a realized loss of $5,000 in

“Other expenses and losses.”