On December $30,$ Year $3,$ Varsity Corporation sold its investment in marketable equity securities costing $$800,000$ for $$860,000$ cash. The securities were purchased on January $2,$ Year $1,$ and the market value of the securities was $$820,000$ and $$780,000$ on December $31,$ Year $1$ and Year $2,$ respectively. How much gain or loss will Varsity report in its income statement for the year ending December $31,$ Year $3?$

A $$40,000$ gain.

A $$20,000$ loss.

A $$60,000$ gain.

An $$80,000$ gain.