Ajax Company owns shares in four other companies and classifies them as equity investments of less than 20 percent ownership. On December 31, 2025, before making the fair value adjustment entry, the Fair Value Adjustment Equity account carried a debit balance of $14,000. As of that date the equity investment portfolio had a historical cost of $756,000 and fair value of $744,000. What would be the gain or loss when recording the fair value adjustment?

Question 7 options:

	$12,000 unrealized loss
	$12,000 unrealized gain
	$26,000 unrealized gain
	$2,000 unrealized loss
	$26,000 unrealized loss