At the End of the First Year of Operations, the Total

Multiple Choice

At the end of the first year of operations, the total cost of the trading securities portfolio is $179,000 and the total fair value is $174,000. What should the financial statements 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 under "Other expenses and losses."
D) A reduction of an asset of $5,000 in the current assets section and a realized loss of $75,000 under "Other expenses and losses."