P$17\mathrm{.}4$B $($LO $1)($available$-$for$-$sale debt investments$)$ Presented below is information taken from a bond investment amortization schedule with related fair values provided. These bonds are classified as available$-$for$-$sale.

$12/31/2012/31/2112/31/22$

$$193,450$ $$196,360$ $$201,000$

$$197,000$ $$195,000$ $$201,000$

Amortized cost

Fair value

Instructions:

a$)$ Indicate whether the bonds were purchased at a discount or at a premium.

b$)$ Prepare the adjusting entry to record the bonds at fair value at December $31,2020.$ The fair value adjustment account has a debit balance of $$2,100$ prior to adjustment.

c$)$ Prepare the adjusting entry to record the bonds at fair value at December $31,2021.$