Fair value adjustment for available-for-sale investments Wheeler Inc. owned the following available-for-sale investments as of December 31, 20Y4: Issuing Company Bernard Co. Chadwick Co. Totals Cost Fair Value $38,250 $37,500 65,520 $103,770 63,770 $101,270 During 2015, Wheeler Inc. did not purchase or sell any available-for-sale securities. The fair value of the Bernard Co. and Chadwick Co. securities as of December 31, 20Y5, were as follows: Issuing Company Bernard Co. Chadwick Co. Fair Value $40,000 66,000 $106,000 a. What was the balance of Valuation Allowance for Available-for-Sale Investments as of January 1, 20Y5? credit b. Journalize the adjustment to fair value for the available-for-sale investments as of December 31, 20Y5. If an amount box does not require an entry, leave it blank. 20Y5 Dec. 31 Valuation Allowance for Available-for-Sale Investments Unrealized Gain on Available-for-Sale Investments Feedback Check My Work b. Calculate the difference between fair market values (current and prior year). Unrealized gains increase cost basis. Unrealized losses decrease cost basis. c. After the adjustment in (b), what is the balance of Valuation Allowance for Available-for-Sale Investments? debit d. Do changes in fair value of available-for-sale securities affect Wheeler Inc.'s net income? No