Loreal-American Corporation purchased several marketable securities during 2018. At December 31, 2018, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2017, and all are considered securities available-for-sale. Cost Fair Value Unrealized Holding Gain (Loss) Short term: Blair, Inc. $ 498,000 $ 396,000 $ (102,000 ) ANC Corporation 459,000 498,000 39,000 Totals $ 957,000 $ 894,000 $ (63,000 ) Long term: Drake Corporation $ 498,000 $ 569,000 $ 71,000 Aaron Industries 711,000 669,000 (42,000 ) Totals $ 1,209,000 $ 1,238,000 $ 29,000 Required: 1. Prepare appropriate adjusting entries at December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2. What amounts would be reported in the income statement at December 31, 2018, as a result of these adjusting entries?