Wilson Companys available-for-sale debt securities portfolio as of December 31, 20x1 is as follows:

Cost Fair Value Unrealized Gain (Loss)

Bonds issued by Fairbank Corp 260,000 210,000 (50,000)

Bonds issued by Baldwin, Inc 245,000 265,000 20,000

$505,000 $475,000 $(30,000)

Ignoring income taxes, what amount should be reported as a reduction of income in Wilsons 20x1 income statement if 20x1 is Wilsons first year of operations?

a) $ 0

b) $ 20,000

c) $ 30,000

d) $50,000