1. At December 31, 2021, Major Company has an equity portfolio valued at $200,000. Its cost was $120,000. If the Securities Fair Value Adjustment has a debit balance of $5,000, how much of an adjustment will be necessary at year end?
2. On May 1, 2021, Gray Company issued a note payable to Fidelity Bank in the amount of $4,800,000, bearing interest at 10%, and payable in four equal annual principal payments of $1,200,000. The first payment for interest and principal was made on May 1, 2022. At December 31, 2022, Gray should record accrued interest payable of?