On February 15, Jewel Company buys bonds of Marcelo Corp. for $201,000. The investment is classified as available-for-sale securities. This is the companys first and only investment in available-for-sale securities. On December 31, the bonds had a fair value of $202,300. The entry to record the year-end adjustment is:

Multiple Choice

• Debit Fair Value AdjustmentAvailable-for-Sale $1,300; credit Realized GainIncome $1,300.

• Debit Cash $1,300; credit Dividend Revenue $1,300.

• Debit Fair Value AdjustmentAvailable-for-Sale $1,300; credit Unrealized GainEquity $1,300.

• Debit Fair Value AdjustmentAvailable-for-Sale $1,300; credit Interest Revenue $1,300.

• Debit Cash $1,300; credit Gain on Sale of Investments $1,300.