Mead Incorporated began operations in Year 1. Following is a series of transactions and events involving its long-term debt investments in available-for-sale securities. Year 1

January 20	Purchased Johnson & Johnson bonds for $24,500.
February 9	Purchased Sony notes for $59,040.
June 12	Purchased Mattel bonds for $44,500.
December 31	Fair values for debt in the portfolio are Johnson & Johnson, $26,300; Sony, $49,750 and Mattel, $54,550.

Year 2

April 15	Sold all of the Johnson & Johnson bonds for $27,500.
July 5	Sold all of the Mattel bonds for $38,650.
July 22	Purchased Sara Lee notes for $16,700.
August 19	Purchased Kodak bonds for $18,100.
December 31	Fair values for debt in the portfolio are Kodak, $18,725 Sara Lee, $16,000 and Sony, $62,000.

Year 3

February 27	Purchased Microsoft bonds for $161,200.
June 21	Sold all of the Sony notes for $60,800.
June 30	Purchased Black & Decker bonds for $54,400.
August 3	Sold all of the Sara Lee notes for $13,350.
November 1	Sold all of the Kodak bonds for $23,075.
December 31	Fair values for debt in the portfolio are Black & Decker, $57,000 and Microsoft, $159,400.

1. Complete the following table that summarizes the (a) total cost, (b) total fair value adjustment, and (c) total fair value of the portfolio of long-term available-for-sale debt securities at each year-end. (Loss amounts should be indicated with a minus sign.)

2. Complete the following table that summarizes (a) the realized gains and losses and (b) the unrealized gains or losses for the portfolio of long-term available-for-sale debt securities at each year-end. (Losses should be indicated by a minus sign.

Debt Investments 12/31/Year 1 12/31/Year 2 12/31/Year 3 Long-Term AFS Securities (cost) Fair value adjustment-AFS Long-Term AFS Securities (Fair value) $ FA 0 $ 0 $ O Year 1 Year 2 Year 3 Realized gains (losses) Sale of Johnson & Johnson Sale of Mattel Sale of Sony Sale of Sara Lee Sale of Kodak Total realized gains (losses) Unrealized gains (losses) at year-end