Presented below is information related to the purchases of common stock by Flounder Company during 2020. Cost (at purchase date) Fair Value (at December 31) Investment in Arroyo Company stock $ 107,000 $ 86,000 Investment in Lee Corporation stock 234,000 281,000 Investment in Woods Inc. stock 178,000 189,000 Total $ 519,000 $ 556,000 In addition, assume that the investment in the Woods Inc. stock was sold during 2021 for $ 193,000. At December 31, 2021, the following information relates to its two remaining investments of common stock. Cost (at purchase date) Fair Value (at December 31) Investment in Arroyo Company stock $ 107,000 $ 148,000 Investment in Lee Corporation stock 234,000 291,000 Total $ 341,000 $ 439,000 Net income before any security gains and losses for 2021 was $ 848,000. (a) Compute the amount of net income or net loss that Flounder should report for 2021, taking into consideration Flounder's security transactions for 2021, assuming Flounder did not select the fair value option for investments in the Lee and Woods corporations. Net income or net loss that Flounder should report for 2021 $ Net income before any security gains and losses for 2021 was $ 848,000. (a) Compute the amount of net income or net loss that Flounder should report for 2021, taking into consideration Flounder's security transactions for 2021, assuming Flounder did not select the fair value option for investments in the Lee and Woods corporations. Net income or net loss that Flounder should report for 2021 $ (b) Prepare the journal entry to record unrealized gain or loss related to the investment in Arroyo Company stock at December 31, 2021. Flounder Company has opted to use the fair value option for its stock investments. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2021 Fair Value Adjustment 20000 Unrealized Holding Gain or Loss - Income 21000