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	1/1/19 Fair Value
A	$15,000	$19,000
B	23,000	22,000
Totals	$38,000	$41,000

During 2019, the following transactions occurred:

Transactions:
May	3	Purchased C debt securities at their par value for $45,000.
July	1	Sold all of the A securities for $19,000 plus interest of $1,000.
Dec.	31	Received interest of $1,000 on the B and C securities. Additionally the following information was available:

Security	12/31/19 Fair Value
B	$26,000
C	47,000

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?