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.

Assume that the Roy Company stock was sold during 2020 for $31,000. The proper accounting recognition at the date of sale was

an unrealized loss $1,000.

a realized gain of $7,000.

a realized gain of $6,000.

a realized loss of $1,000.