On January 12, 2021, Lupin Corporation purchased bonds of Longbottom Corporation at their face amount for $86,000 and classified the securities as available-for-sale. On December 31, 2021, these bonds were valued at $81,000. Nine months later, on October 3, 2022, Lupin Corporation sold these bonds for $89,000. Prepare the journal entries required on the date of sale assuming Lupin uses a multistep approach to record the sale.

Record the fair-value adjustment.

Record any reclassification adjustment.

Record the sale of the investment by Lupin