Cost and Fair Value Data for the Trading Securities of McMahon

Cost and fair value data for the trading securities of McMahon Company at December 31, 2014, are $110,000 and $85,000, respectively. Which of the following correctly presents the adjusting journal entry to record the securities at fair value? a. $\begin{array}{lrr} \text { Dec. 31\quad Unrealized Loss-Income. } &25,000\\\quad\quad\quad\quad \text { Trading Securities} &&25,000\\\end{array}$

b. $\begin{array}{lrr} \text { Dec. 31 \quad Unrealized Gain-Income } &25,000\\\quad\quad\quad\quad \text { Trading Securities } &&25,000\\\end{array}$

c. $\begin{array}{lrr} \text { Dec. 31\quad Unrealized Loss-Income. } &25,000\\ \quad\quad\quad\quad\quad\text {Fair Value Adjustment-Trading } &&25,000\\\end{array}$

d. $\begin{array}{lrr} \text { Dec. 31 \quad Fair Value Adjustment-Trading } &25,000\\ \quad\quad\quad\quad\text { Unrealized Gain—Income} &&25,000\\\end{array}$