Brandy Corporation's Trading Portfolio at the End of the Year

Brandy Corporation's trading portfolio at the end of the year is as follows: $\begin{array}{lrr}\underline{\text { Security}}&\underline{\text { Cost}}&\underline{\text { Fair Value}}\\\text { Common Stock C } & \$ 10,000 & \$ 12,000 \\\text { Common Stock D } & \underline{9,000} & \underline{5,000}\\&\underline{\$19,000}&\underline{\$17,000}\end{array}$ At the end of the year Brandy Corporation should

A) set up a Fair Value Adjustment account for Stock D.
B) set up a Fair Value Adjustment account for the portfolio.
C) recognize an Unrealized Gain or Loss-Income for $4000.
D) report a loss on the income statement for $4000 under "Other expenses and losses."