Fair Value Journal Entries, Available-for-Sale Investments

Storm, Inc. purchased the following available-for-sale securities during Year 1, its first year of operations:

Name		Number of Shares	Total Cost
Dust Devil, Inc.		1,100		$34,650
Gale Co.		400		28,600
Whirlwind Co.		2,500		77,500
	Total			$140,750

The market price per share for the available-for-sale security portfolio on December 31, Year 1 was as follows:

	Market Price per Share
	Dec. 31, Year 1
Dust Devil, Inc	$22
Gale Co.	78
Whirlwind Co.	30

a. Provide the journal entry to adjust the available-for-sale security portfolio to fair value on December 31, Year 1.

Year 1, Dec. 31

b. Is there any impact of December 31, Year 1 journal entry on the income statement?

, any unrealized gain/loss is reported of the .