Arnott Inc. purchased a portfolio of available-for-sale securities in 2012, its first year of operation. The cost and fair value of this portfolio on December 31, 2012, was as follows:

On may 10, 2013, Arnott purchased 900 shares of Violet Inc. at $42 per share plus a $125 brokerage fee. a. Provide the journal entries to record the following:1. The adjustment of the available-for-sale security portfolio to fair value on December 31, 2012. 2. The May 10, 2013, purchase of Violet Inc. stock. b. How are unrealized gains and losses treated differently for available-for-sale securities than for tradingsecurities?

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Total Cost Number of Shares 600 900 1,800 Total Fair Value Name Jasper, Inc. Parker Corp. Smithfield Corp. Total $ 9,000 21,000 $10,500 23,400 32,500 31,900 $62,500 $65,800