Kramer Company's equity securities portfolio which is appropriately included in current assets is as follows:

December 31, 2018

Fair Unrealized

Cost Value Gain (Loss)

Catlett Corp. $260,000 $215,000 $(45,000)

Lyman, Inc. 245,000 265,000 20,000

$505,000 $480,000 $(25,000)

Ignoring income taxes, what amount should be reported as a charge against income in Kramer's 2018 income statement if 2018 is Kramer's first year of operation?

a. $0.

b. $20,000 gain.

c. $25,000 loss.

d. $45,000 loss.