At January 1 . 2014, a company had a net valuation allowance account credit balance for investments in securities available-for-sale of $20,000 . At December 31 . 2014, the total cost of the relevant portfolio was $300,000, and total market value was $275,000 . The entry required on December 31 . 2014, would reflect a

a. $5,000 decrease in net income.
b. $25,000 decrease in net income.
c. credit of $5,000 to the valuation allowance account.
d. debit of $25,000 to the unrealized loss account.

C

Business

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