A company purchased bonds at face amount on July 1, Year 1,…

A company purchased bonds at face amount on July 1, Year 1, for $100,000. The bonds have a stated rate of 5%, pay semiannual interest, and mature in 7 years. As of December 31, Year 1, the fair value of the bonds has increased to $108,000. Assuming the investment is classified as trading securities, what is the unrealized holding gain or loss recognized in the income statement in Year 1?