11. Sorter Quillman Associates acquired $7,540,000 par value, 4%, 20-year bonds on their date of issue, January 1 of the current year. (Click the icon to view additional information.) Requirement Prepare the fair value adjustment journal entries at the end of the second and third years after the acquisition of the investment assuming that the fair value of the bonds is equal to $5,080,000 at the end of year 2 and $505,860 at the end of year three. (Round your intermediary and final answers to the nearest whole dollar. Record debits first, then credits. Exclude explanations from any journal entries.) Prepare the journal entry required to record the fair value adjustment at the end of Year 2. December 31, Year 2 Account (1) Unrealized Gain/Loss - Other Comprehensive Income (2) Fair Value Adjustment - Available-for-Sale Debt Investment (3) Prepare the journal entry required to record the fair value adjustment at the end of Year 3. December 31, Year 3 Account 1: More Info The market rate at the time of issue is 14% and interest is paid semiannually on June 30 and December 31. Quillman uses the effective interest rate method to account for this investment. Quillman does not intend to hold the investment until maturity nor will it actively trade the bonds. The fair value of the bonds at the end of the year of acquisition is $5,197,400. The purchase price of the investment in bonds is $2,513,946. The fair value adjustment-available-for-sale debt investment account has a debit balance of $2,631,339 at the end of the year of acquisition