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

Cost Fair Value

Atrium Corporation $ 46,500 $ 50,000

Barnes Inc. 60,000 58,000

Cantor Corporation 80,000 76,400

$186,500 $184,400

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

a. $2,000.

b. $5,600.

c. $2,100.

d. $3,600.