Available-for-sale securities; adjustment to fair value During its first year of operations, Giovani Foods purchased available-for-sale securities for $37,500. Glovani Foods expects it will sell the secunities within the next year. At the end of the yeac, these securities had a market value of $33,900. Assume that Giovani Foods did not purchase or sell any avallable-for-sale securities during its second year of operations. At the end of the second year, the market value of the avaliable-for-sale securities is $40,000. a. What would be the amount of the adjustment to fair value for the availabie-for-sale securities? b. After the adjustment is posted to the accounts, what is the balance of the valuation allowance for available-for-sale securities account? c. How would the increase in the fair value of the securities in the second year be reported on Giovani Foods' financial statements? The avalable-for-saie securities would be reported as a securities would be reported as an addition to on the balance sheet. The unrealized gain on available-for-sale on the balance sheet. Available-for-sale securities; adjustment to fair value During its first year of operations, Giovani Foods purchased available-for-sale securities for $37,500. Glovani Foods expects it will sell the secunities within the next year. At the end of the yeac, these securities had a market value of $33,900. Assume that Giovani Foods did not purchase or sell any avallable-for-sale securities during its second year of operations. At the end of the second year, the market value of the avaliable-for-sale securities is $40,000. a. What would be the amount of the adjustment to fair value for the availabie-for-sale securities? b. After the adjustment is posted to the accounts, what is the balance of the valuation allowance for available-for-sale securities account? c. How would the increase in the fair value of the securities in the second year be reported on Giovani Foods' financial statements? The avalable-for-saie securities would be reported as a securities would be reported as an addition to on the balance sheet. The unrealized gain on available-for-sale on the balance sheet