On its December 31, 2024 balance sheet, Calhoun Company appropriately reported a $10,000 credit balance in its Fair Value Adjustment account. There was no change during 2024 in the composition of Calhouns portfolio of debt investments. The following information pertains to that portfolio:

Security Cost Fair value at 12/31/24

X $130,000 $160,000

Y 100,000 90,000

Z 175,000 125,000

$405,000 $375,000

The 12/31/25 (mark to market) fair value adjustment assuming the above securities were available-for-sale debt investments will include a

a.

Credit to Fair Value Adjustment account for $30,000.

b.

Debit to Unrealized Holding Loss Income for $30,000.

c.

Debit to Fair Value Adjustment account for $20,000.

d.

Debit to Unrealized Holding Loss Equity for $20,000.