Eastwood Enterprises owns 300 bonds of the Van Cleef Company (5% of the outstanding debt of Van Cleef). Eastwood is trying to determine the fair value of Van Cleefs bonds. The relevant facts are as follows:

• Eastwood bought the Van Cleef bonds earlier in the accounting period for $1,000/bond at a time when the bonds were publicly traded.
• Since Eastwood bought the bonds, Van Cleef Company has been delisted from the stock exchange and there is no longer an active market in the Van Cleef bonds.
• Eastwood's internal valuation specialist estimates the Van Cleef bonds to be worth $800/bond. Eastwood plans to continue holding the bonds, but may someday sell them if their value increases sufficiently.

Required: 1. What is the fair value of Eastwood's investment in Van Cleef bonds? 2. Prepare a journal entry to record any necessary fair value adjustment.