On January $22,2022$ Maxwell Corp. purchased an investment in Malinois Corporation's

equity securities for $$45,000.$ At December $31,2022,$ Maxwell's fiscal year$-$end, the

securities had a fair value of $$47,500.$ Assuming the Fair Value Adjustment account had

a zero balance, the necessary adjusting entry would include:

A$.$ A debit to Fair Value Adjustment for $$2,500$

B$.$ A credit to Fair Value Adjustment for $$2,500$

C$.$ A credit to Investments for $$47,500$

D$.$ No adjusting entry is needed since these are equity securities

Referring to question $22$ above. On February $7,2023$ Maxwell sells the investment for

$$46,000.$ The entry to record the sale would include:

A$.$ A debit to Fair Value Adjustment for $$1,000$

B$.$ A credit to Investment in Malinois for $$47,500$

C$.$ A credit to Fair Value Adjustment for $$1,500$

D$.$ A credit to Cash for $$46,000$