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In 20X4, Benson Office Supply purchased $40,000 of bonds (purchased at par value) of Mingo Inc. and classified the debt investment as available-for-sale. The investment had market values of $44,000 and $39,000 as of December 31, 20X4 and 20X5 respectively. In June 20X6, the enterprise decided to reclassify the Mingo bonds as trading securities. The bonds had a market value of $41,000 at the time of the reclassification. What amount of holding gain or loss is immediately recognized in 20X6 earnings? a) $3,000 loss b) $1,000 gain c) $2,000 gain d) $2,000 loss
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