At the end of its first year, the trading securities portfolio consisted of the following common stocks.

CostFair Value

Atrium Corporation$46,500$60,000

Barnes Inc.60,00058,000

Cantor Corporation80,00076,400

$186,500$194,400

The unrealized gain or loss to be recognized under the fair value method is

a.unrealized gain $7,900.

b.unrealized loss$7,900

c.unrealized loss$1,500.

d.unrealized gain $1,500.