At December 31, 2020, the available-for-sale debt portfolio for Sunland, Inc. is as follows.

Security		Cost		Fair Value		Unrealized Gain (Loss)
A		$17,200		$14,500		$(2,700	)
B		11,700		14,400		2,700
C		23,900		25,600		1,700
Total		$52,800		$54,500		1,700
Previous fair value adjustment balanceDr.						400
Fair value adjustmentDr.						$1,300

On January 20, 2021, Sunland, Inc. sold security A for $14,600. The sale proceeds are net of brokerage fees. Sunland, Inc. reports net income in 2020 of $118,000 and in 2021 of $141,000. Total holding gains (including any realized holding gain or loss) equal $45,000 in 2021.