ABC Inc purchased shares of DEF Inc as follows: June 30th, 2013 4,000 shares @ $3 per share $12,000 June 30th, 2014 3,000 shares @ $4 per share $12,000 June 30th, 2015 3,000 shares @ $6 per share $18,000 The shares are considered to be passive investments. ABC Inc. has a December 31st, year-end. The market value of the DEF shares at each year-end was as follows: December 31st, 2013 $3.50 per share December 31st, 2014 $5.00 per share December 31st, 2015 $5.50 per share On July 1st, 2015, ABC sold half its shares in DEF Inc. for $6.50 per share. Assuming that the shares are designated an FVTPL investment, the effect on ABC's 2013 income as a result of owning the DEF shares would be:

Select one:

a.

$0

b.

A $2,000 unrealized holding loss.

c.

A $4,000 unrealized holding gain

d.

A $2,000 unrealized holding gain