At December 31, 2020, the available-for-sale debt portfolio for Zorro Foods Corp. is as follows: Security Apple Banana Crisp Total Cost $33,600 175,000 59,400 $268,000 Fair Value $31,000 174,000 68.500 $273,500 December 31, 2020, fair value adjustment balance-Dr. $6,400 On January 20, 2021, Zorro sold Apple for $34,100. The sale proceeds are net of brokerage fees. Instructions: 1. Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair value. 2. Prepare the journal entry for the 2021 sale of Apple.