Holly Company invests its excess cash in marketable securities. At the beginning of 2019, it had the following portfolio of investments in available-for-sale securities:

Security Par Value Amortized Cost 12/31/18 Fair Value Igor Co. 5% bonds, maturing on 12/31/2028 $10,000 $8,400 $9,400 Ozone Co. 6% bonds, maturing on 12/31/2023 $20,000 $23,100 $21,700 Totals $31,500 $31,100

During 2019, the following transactions occured:

3/31 Purchased Union Co. 8% bonds with a face value of $10,000 for $10,000 plue accrued interest; interest is payable ont he bonds each 6/30 and 12/31.

3/31 Sold the Ozone Co. investment for $22,000 plus accrued interest.

6/30 Received the semiannual interest on the Union Co. bonds.

12/31 Received the annual interest on the Igor Co. bonds and the semiannual interest on the Union Co. bonds.

The 12/31 closing market prices were as follows: Igor Co. bonds, $9,000; and Union Co. 8% bonds, $10,100. Holly uses the straight-line method to amortize any discounts or premiums.

Required:

1. Prepare journal entries to record the preceeding information. 2. Show what is reported on Holly's 2019 income statement. 3. Assuming the investment in Igor Co. bonds is considered to be a current asset and theinvestment in Union Co. is considered to be a noncurrent asset, show how all the items are reported on Holly's 12/31/19 balance sheet. 4. What is Holly's unrealized holding gain or loss on available-for-sale securities in 2019?