Below is data regarding Reid, Inc.s investments in Debt Securities which uses the portfolio approach to account for investments in bonds classified as Trading. (same process if Equity Securities using the Fair Value Method)

Record the purchase of Bond B

Record the fair value adjustment of Bond A and Bond B on December 31, 2020

Record the sale of Bond A on January 21, 2021

Record the fair value adjustment on December 31, 2021

Security Purchase Date Date Sold Selling Price Purchase Price Fair Value December 31, 2020 Fair Value December 31, 2021 Bond A $500,000 $470,000 $470,000 January 21, 2021 January 15, 2021 Bond B $20,000 $24,000 $24,000 November 20, 2020 December 20, 2020 December 10, 2021 December 28, 2021 Bond C $ 75,000 $80,500 Bond D $135,000 $134,500 TOTAL