The following information for Staley Co. is available:

Debt Securities	Initial Cost	Fair Value 12/31/2021	Fair Value 12/31/2022
Mo Co.	15,000	18,000	22,500
Curly Co.	10,500	4,500	10,000
Larry Co.	31,500	27,000	33,000

These debt securities have been correctly classified as available for sale. In the financial statements of Staley Co. dated December 31, 2022, the effect on net income and the reported balances of these securities are

	Net Income Effect	Reported Balance
A	$0	$57,000
B	$0	$65,500
C	$8,500 gain	$65,500
D	$16,000 gain	$65,500