The amounts indicated pertain to Royal Fairmont's trading debt investments, purchased 1/1/21:

Cost: $16,000

12/31/21 Fair Value: $15,000

12/31/22 Fair Value: $11,000

The Net Income effect of the 12/31/22 adjustments will be:

Select one:

a.

$(4,000)

b.

$5,000

c.

$1,000

d.

$(5,000)

e.

$(1,000)