On its December 31, 2014 balance sheet, Calhoun Company appropriately reported a $10,000 debit balance in its Fair Value Adjustment (available-for-sale) account. There was no change during 2015 in the composition of Calhoun's portfolio of equity investments held as available-for-sale securities. The following information pertains to that portfolio:

Security	Cost	Fair value at 12/31/15
X	$125,000	$160,000
Y	100,000	90,000
Z	175,000	125,000
	$400,000	$375,000

1. Prepare the adjusting entry at 12/31/15.

2. Show the Asset section of Investments Available-for-Sale at 12/31/15.

3. If Calhoun Company had Common Stock of $300,000 and Retained Earnings of $160,000, show the Equity section of the Balance Sheet at 12/31/15.