Cullumber, Inc. had investments in trading debt securities that cost $76,400 to acquire but were worth $70,500 at fair value as of December 31, the end of the company's first year of operations. The controller, Pat Ernst, would report the $76,400 cost as the carrying amount of the investments on the balance sheet and recognize an unrealized loss of $5,900 ($76,400 - $70,500) on the income statement.