ABC buys and sells securities expecting to earn profits on short-term differences in price.The following selected transactions relate to their investments in trading securities during 2022-2023. The company's fiscal year ends on December 31. No trading securities were held by ABC on Jan 1, 2022. 2022

May 1) Purchased 10,000 shares of CAT stocks for $120 per share

Jun 1) Purchased 10,000 shares of CAT stocks for $115 per share

Jul 1) Sold 15,000 shares of CAT stocks for $125 per share.

Nov 1)Received dividend $50,000

Dec 31) Market price for CAT is $145 per share

2023

Apr 1) Purchased 10,000 CAT stocks for $160 per share

May 1) Sold 7,000 CAT stocks for $150 per share

July 1) Purchased 10,000 CAT stocks for $180 per share

Aug 1) Sold 5,000 shares of CAT stocks for $190 per share

Dec 31) Market price for CAT is $170 per share

ABC uses the first-in first-out (FIFO) cost-basis assumption. What is the ending balance of "fair value adjustment" on Dec 31, 2023?

$520,000

($70,000)

$32,000

($155,000)