At the end of the first year of operations, the total cost of the trading securities portfolio is $120,000 and the total fair value is $115,000. What should the financial statements show?

(a) A reduction of an asset of $5,000 and a realized loss of $5,000.

(b) A reduction of an asset of $5,000 and an unrealized loss of $5,000 in the stockholders' equity section.

(c) A reduction of an asset of $5,000 in the current assets section and an unrealized loss of $5,000 under "Other expenses and losses."

(d) A reduction of an asset of $5,000 in the current assets section and a realized loss of $5,000 under "Other expenses and losses."