$35.$

On its December $31,2024,$ balance sheet, Pharoah Company reported its investment in equity securities$,$ which cost $$770000,$ at fair value of $$682000.$ At December $31,2025,$ the fair value of the securities was $$721000.$ What should Pharoah report on its $2025$ income statement as a result of the increase in fair value of the investments in $2025?$

$$0$

Unrealized gain of $$39000$

Unrealized loss of $$49000$

Realized gain of $$39000$