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On its December 31, 2024, balance sheet, Trident Company reported its investment in debt as available-for-sale securities, which had cost $600,000 and fair value of

On its December 31, 2024, balance sheet, Trident Company reported its investment in debt as available-for-sale securities, which had cost $600,000 and fair value of $550,000. At December 31, 2025, the fair value of the securities was $585,000. What should Trident report on its 2025 income statement as a result of the increase in fair value of the investments in 2025?

Answers: a.
Realized gain of $35,000.

b.
Unrealized gain of $35,000.

c.
Unrealized loss of $15,000.

d.
$0.

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