Exercise 17-10 (Part Level Submission) At December 31, 2017, the available-for-sale debt portfolio for Kingbird, Inc. is as follows Unrealized Gain (Loss) Security Cost Fair Value $175,875 125,625 231,150 $532,650 $150,750 140,700 256,275 $547,725 $(25,125) 15,075 25,125 15,075 4,020 $11,055 Total Previous fair value adjustment balance-Dr Fair value adjustment-Dr On January 20, 2018, Kingbird, Inc. sold security A for $151,755. The sale proceeds are net of brokerage fees KingbirdInc. reports net income in 2017 of $1,206,000 and in 2018 of $1,407,000. Total holding gains (including any realized holding gain or loss) equal $402,000 in 2018