At December 31, 2017, the available-for-sale debt portfolio for Steffi Graf, Inc. is as follows.

Security Cost Fair Value Unrealized Gain (Loss)

A $17,500 V$15,000 ($2,500)

B 12,500 14,000 1,500

C 23,000 25,500 2,500

Total $53,000 $54,500 1,500

Previous fair value adjustment balanceDr. 400 Fair value adjustmentDr. $1,100

On January 20, 2018, Steffi Graf, Inc. sold security A for $15,100. The sale proceeds are net of brokerage fees.Instructions

(a) Prepare the adjusting entry at December 31, 2017, to report the portfolio at fair value.

(b) Show the balance sheet presentation of the investment-related accounts at December 31, 2017. (Ignore notes presentation.)

Assume the same information as E17-9 and that Steffi Graf, Inc. reports net income in 2017 of $120,000 and in 2018 of $140,000. Total holding gains (including any realized holding gain or loss) equal $40,000 in 2018.Instructions

(a) Prepare a statement of comprehensive income for 2017, starting with net income.

(b) Prepare a statement of comprehensive income for 2018, starting with net income.