At the beginning of 2019, Ace Company had the following portfolio of investments in available-for-sale debt securities (all of which were acquired at par value): Security Cost 1/1/2019 Fair Value A $20,000 $25,000 B 30,000 29,000 Totals $50,000 $54,000 During 2019, the following transactions occurred: Transactions: May 3 July 1 Dec. 31 Purchased C debt securities at their par value for $50,000. Sold all of the A securities for $25,000 plus interest of $1.000. Received interest of $7,600 on the B and C securities. Additionally the following information was available: Security 12/31/19 Fair Value B C $29,000 52,500 Required: 1. Prepare journal entries to record the preceding information. 2. What is the balance in the Unrealized Holding Gain/Loss account on December 31, 2019? 3. Next Level What justification does the FASB give for its treatment of unrealized holding gains and losses for available-for-sale securities