Sandhill Company purchased $3400000 of 8%, 5-year bonds from Blue, Inc. on January 1, 2021, with interest payable on July 1 and January 1. The bonds sold for $3524740 at an effective interest rate of 7%. Using the effective-interest method, Sandhill Company decreased the Available-for-Sale Debt Securities account for the Blue, Inc. bonds on July 1, 2021 and December 31, 2021 by the amortized premiums of $11420 and $11780, respectively. At December 31, 2021, the fair value of the Blue, Inc. bonds was $3580000. What should Sandhill Company report as other comprehensive income and as a separate component of stockholders' equity?

A. $78460.

B. No entry should be made.

C. $55260.

D. $23200.