At January 1, 2011, a company had a net valuation allowance account credit balance for investments in securities available-for-sale of $20,000. At December 31, 2011, the total cost of the relevant portfolio was $300,000, and total market value was $275,000. The entry required on December 31, 2011, 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.