On January 1, 2018, Company R purchased 11% bonds, having a maturity value of $500,000. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2018, and mature January 1, 2023, with interest receivable December 31 of each year. Roosevelt Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the trading securities. The fair value of the bonds at December 31 of 2018 (2019) is $534,200 ($505,000).

What is the amount of gains or losses reported on income statement of 2019?

	a.	$18,351.20 of unrealized holding gain.
	b.	$25,784.88 of unrealized holding loss.
	c.	$7,433.68 of unrealized holding loss.
	d.	$12,481.20 of unrealized holding gain.