At the end of the first year of operations, the total cost of the trading securities portfolio is \(\$ 120,000\), and total fair value is \(\$ 115,000\). The financial statements should show:

a. a reduction of an asset of \(\$ 5,000\) and a realized loss of \(\$ 5,000\).

b. a reduction of an asset of \(\$ 5,000\) and an unrealized loss of \(\$ 5,000\) in the stockholders' equity section

c. a reduction of an asset of \(\$ 5,000\) in the current asset section and an unrealized loss in Other Expenses and Losses of \(\$ 5,000\).

d. a reduction of an asset of \(\$ 5,000\) in the current asset section and a realized loss of \(\$ 5,000\) in Other Expenses and Losses.