Cardinal Paz Corp. carries an account in its general ledger called Investments, which contained debits for investment purchases, and no credits, with the following descriptions.

Feb. 1, 2017Sharapova Company common stock, $100 par, 200 shares $37,400

April 1U.S. government bonds, 11%, due April 1, 2027, interest payable April 1 and October 1, 110 bonds of $1,000 par each 110,000

July 1McGrath Company 12% bonds, par $50,000, dated March 1, 2017, purchased at 104 plus accrued interest, interest payable annually on March 1, due March 1, 2037 54,000

a. Prepare entries necessary to classify the amounts into proper accounts, assuming that all the securities are classified as available-for-sale.

b. Prepare the entry to record the accrued interest and the amortization of premium on December 31, 2017, using the straight-line method.

c. The fair values of the investments on December 31, 2017, were:

Sharapova Company common stock		$31,800
U.S. government bonds		124,700
McGrath Company bonds		58,600

What entry, if any, would you recommend be made?