On March 25, 2021, Phillips Corporation purchased bonds of Atlas Corporation for $182 million and classified the securities as trading securities. On December 31, 2021, these bonds were valued at $205 million. Three months later, on April 3, 2022, Phillips Corporation sold these bonds for $192 million. As part of the multistep approach to record the 2022 transaction, Phillips Corporation should first update the fair value adjustment by recording:

Multiple Choice

• An unrealized holding gain of $36 million in 2022.

• An unrealized holding loss of $13 million in 2022.

• An unrealized holding gain of $10 million in 2022.

• A gain of $10 million in 2022.