P17-4 (Available-for-Sale Debt Securities) Presented below is information taken from a bond investment amortization schedule with related fair values provided. These bonds are classified as available-for-sale. 12/31/06 12/31/07 12/31/08 Amortized Cost $491,150 $519,442 $550,000 Fair Value $497,000 $509,000 $550,000 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, 2006. The Securities Fair Value Adjustment account has a debit balance of $1,000 prior to adjustment. c. PreparetheadjustingentrytorecordthebondsatfairvalueatDecember31,2007