1.On June 30, a business has the following information regarding its long-term investments that qualify as available for sale securities:

CostMarket value

ABC Co.100,000125,000

XYZ Co. 100,00090,000

On June 30, the following unadjusted account balances exists:

Fair value adjustment$5,000 credit

Unrealized loss$5,000 debit

Prepare any necessary journal entries to record the adjustment to fair market value on June 30