Central Investments bought 4,000 shares of Benet Company common stock on January 1, 2018, for $20,000, and 4,000 shares of Roy Company common on July 1, 2018, for $24,000. Benet declared dividends on December 31, 2018 of $3,000. At the end of 2018, the fair value of Roy was $30,000 and the fair value of Benet was $28,000. At the end of 2019, the fair value of Roy was $32,000 and the fair value of Benet was $24,000. These investments are reported in the long-term asset section of Centrals balance sheet. Central owns 8% of Benet Company and 12% of Roy Company.

The 2019 year-end adjustment resulted in

Group of answer choices

a $2,000 reduction of net income.

b realized gain of $2,000

c $12,000 reduction of net income

d $2,000 increase in stockholders equity.