On June 15, 2020, Brainiac Company purchased 8 shares of Lovely Company for $6 per share. The investment represented less than 20% of the shares outstanding so it was a passive investment. Brainiac held the investment for the remainder of 2020, and at December 31 the market value was $4 per share. During 2021, Whiz sold 3 shares of Lovely for $7 each and at the end of 2021, the market value of the remaining 5 shares was $9 each.

What was the gain or loss on the 2020 income statement?

Select one:

a. $16 realized gain

b. $16 unrealized loss

c. $16 unrealized gain

d. $16 realized loss