Blat Blot Ltd. purchases 1 share of Banana Co. for $200 on February 20th, Year 2. As at December 31, Year 2, that share of Banana Co. is now valued at $300. On January 15th, Year 3, Blat Blot Ltd. sells the Banana Co. share for $420. Blat Blot Ltd.s year end is December 31. The company uses the fair value through profit or loss method to account for this investment. The January 15th, Year 3 journal entry would include the following:

Select one:

a.

A credit to unrealized gains for $100

b.

A credit to realized gains for $120

c.

A credit to unrealized gains for $120

d.

A credit to realized gains for $220