On March 15, Carter Company purchased 10,000 shares of Tonya Corp. stock for $35,000. This investment is considered to be an available-for-sale investment. On June 30, the stock had a market value of $38,000. Carter must report:

a. The $3,000 difference on the income statement as a gain. b. The $3,000 difference as an adjustment to the market value at year-end. c. The $3,000 difference in the equity section of the balance sheet. d. A & C e. B & C