Loreal-American Corporation purchased several marketable securities during 2021. At December 31, 2021, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2020, and all are considered securities available-for-sale. Short term: Blair, Inc. ANC Corporation Totals Unrealized Holding Cost Fair Value $ 512,000 $ 389,000 466,000 512,000 $ 978,000 $ 901,000 Long term: Drake Corporation $ 512,000 $ 576,000 Aaron Industries Totals 704,000 $1,216,000 676,000 $1,252,000 Gain (Loss) $(123,000) 46,000 $ (77,000) $ 64,000 (28,000) $ 36,000 Required: 1. Prepare appropriate adjusting entries at December 31, 2021. 2. What amount would be reported in the income statement at December 31, 2021, as a result of the adjusting entry?