Flynn Corporation's trading portfolio at the end of the year is as follows:

SecurityCostMarket Value

Common StockA$10,000$12,000

Common StockB8,0005,000

$18,000$17,000

At the end of the year, Flynn Corporation should

a.set up a Market Adjustment account for Stock B.

b.set up a Market Adjustment account for the portfolio.

c.recognize an Unrealized Gain or LossIncome for $3,000.

d.report a loss on the income statement for $3,000 under "Other Expenses and Losses."