On January 12, 2021, Jefferson Corporation purchased bonds of Rose Corporation for $54 million at par and classified the securities as available-for-sale. On December 31, 2021, these bonds were valued at $47 million. Nine months later, on October 3, 2022, Jefferson Corporation sold these bonds for $64 million. As part of the multistep approach to record the 2022 transaction, Jefferson Corporation should next take the second step of:

Multiple Choice

• Reversing total accumulated unrealized holding gains of $24 million.

• Reversing total accumulated unrealized holding gains of $10 million.

• Reversing total accumulated unrealized holding gains of $17 million.

• Reversing total accumulated unrealized holding gains of $7 million.