On January 1, 20x1, Allan Co. purchased ₱400,000 bonds for ₱392,000.  The bonds mature on January 1, 20x5 and pay 12% annual interest beginning January 1, 20x2. Transaction costs are negligible. The bonds were classified as held for trading securities. On December 31, 20x1, the bonds are selling at a yield rate of 10%. How much is the unrealized gain (loss) recognized on December 31, 20x1?

a. 27,986
b. 31,298
c. 28,964
d. 33,359