Rye Company purchased 15% of Lena Company's common stock during 2014 for $150,000. The 15% investment in Lena had a $160,000 fair value at the end of 2014 and a $140,000 fair value at the end of 2015. Which of the following statements is correct if Rye classifies the investment as a trading security?

A.

The 2014 unrealized gain is $10,000 and is included in Lena's 2014 net income.

B.

The 2015 unrealized loss is $20,000, but is not included in Lena's 2015 net income.

C.

The 2015 unrealized loss is $10,000 and is included in Lena's 2015 net income.

D.

The 2014 unrealized gain is $10,000 and is reported on Lena's balance sheet as a component of other comprehensive income.

Explain your answer.