a) Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair value.

b) Show the balance sheet presentation of the investment-related accounts at December 31, 2020.

c) Prepare the journal entry for the 2021 sale of security A.

At December 31, 2020, the available-for-sale debt portfolio for Martinez, Inc. is as follows. Security Cost Fair Value $35,000 $30,000 25,000 28,000 46,000 51,000 Total $106,000 $109,000 Previous fair value adjustment balance- Dr. Fair value adjustment-Dr. Unrealized Gain (Loss) $(5,000) 3,000 5,000 3,000 800 $2,200 On January 20, 2021, Martinez, Inc. sold security A for $30,200. The sale proceeds are net of brokerage fees