A. (30 pts.) The available-for-sale debt securities portfolio of Vistello Co. on December 31, 2005 was: Security Cost Fair Value Unrealized Gain/(Loss) SRC 42,420 40,600 (1,820) XSV 80,400 88,480 8,080 6,260 Previous valuation allowance balance 4,240 Fair value adjustment 2,020 Vistello Co. sold its investment in SRC for $48,820 on September 20, 2006. The fair value of Vistello's investment in XSV on December 31, 2006 was $84,200. Required: 1. Prepare the adjusting entry to report the portfolio at fair value on December 31, 2005. 2. Prepare the journal entry for the sale of the investment in SRC in 2006. 3. Prepare the adjusting entry to report the portfolio at fair value on December 31, 2006