Lovun Quinta Associates acquired 57,580,000 par value, 5% 20-year bonds on their cate of issue, January 1 of the current year i (Click the icon to view additional information.) Requirement Prepare the fair value adjustment journal entries at the end of the second and mind years after the acquisition of the investment assuming that the fair value of the bonds is equal to $5,070,000 at the end of year 2 and $4.504,740 at the end of year three. (Round your intermediary and final answers to the nearest wole dollar. Record debits first, then credits. Exclude explanations from any journal entries Prepare the journal enty required to record the fair value adjustment at the end of Year 2. December 31, Year 2 163,095 183,095 i More into Account Unrea zed Gain/Loss - Other Comprehensive Income Fair Value Adjustmeni - Availablc-for-Sale Dcht Investment The market rate at the time of issue is 145 and interest is said semiannually on June 30 and December 31. Quinta uses the effective interest rate method to account for this investment. Quinta does not intend to hold the investment until malurily run wil ilaclivcly trade the bonds. The fair value of the brids al the end of the year of acquisition is $6.197.200. The purchase price of the Investment in bonds is $1,596,318. The fair value adjustment-available-for-sale cebt investment account has a debit ba anice of $629,480 at the end of the year of acquisition. Prepare the journal entry required to record the fair value adjustment at the end of Year 3 December 31, Year 3 | Account Urealized Gail.com - Other Comprehensive Income Fair Value Adjustment - Available-tor-Sale Debt Investment Print Dure