Question - The following information pertains to Lark Corp's long-term marketable equity securities portfolio:

December 31

2011 2010

Cost $200,000 $200,000

Fair value 240,000 180,000

Differences between cost and market values are considered to be temporary. The decline in market value was properly accounted for at December 31, 2010. At December 31, 2011, what is the net unrealized holding gain or loss to be reported as:

Other Accumulated Other

Comprehensive Income Comprehensive Income

a $60,000 gain $40,000 gain

b $40,000 gain $60,000 gain

c $20,000 loss $20,000 loss

d $0 $0