At December 31, 2020, the available-for-sale debt portfolio for Riverbed, Inc. is as follows. Security Cost Fair Value Unrealized Gain (Loss) A $32,375 $27,750 $(4,625 ) B 23,125 25,900 2,775 C 42,550 47,175 4,625 Total $98,050 $100,825 2,775 Previous fair value adjustment balanceDr. 740 Fair value adjustmentDr. $2,035 On January 20, 2021, Riverbed, Inc. sold security A for $27,935. The sale proceeds are net of brokerage fees.

Part 1: Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair value. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.

Part 2:

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

Part 3:Prepare the journal entry for the 2021 sale of security A. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)