Rye Company Purchased 15% of Lena Company's Common Stock During

Rye Company purchased 15% of Lena Company's common stock during 2010 for $150,000.The 15% investment in Lena had a $160,000 fair value at the end of 2010 and a $140,000 fair value at the end of 2011.Which of the following statements is incorrect if Rye classifies the investment as an available-for-sale security?

A) The 2010 unrealized gain is $10,000, but is not included in Lena's 2010 net income.
B) The 2011 unrealized loss is $20,000, but is not included in Lena's 2011 net income.
C) The 2011 unrealized loss is $10,000 and is included in Lena's 2011 net income.
D) The 2010 unrealized gain is $10,000 and is reported on Lena's balance sheet as a component of stockholders' equity.