Problem 16-01A a-c (Part Level Submission) (Video) Crane Carecenters Inc. provides financing and capital to the healthcare industry, with a particular focus on nursing homes for the elderly. The following selected transactions relate to bonds acquired as an investment by Crane, whose fiscal year ends on December 31.

2020 Jan. 1 Purchased at face value $2,898,000 of Javier Nursing Centers, Inc., 10-year, 10% bonds dated January 1, 2017, directly from Javier. Dec. 31 Accrual of interest at year-end on the Javier bonds.

(Assume that all intervening transactions and adjustments have been properly recorded and that the number of bonds owned has not changed from December 31, 2020, to December 31, 2022.)

2023 Jan. 1 Received the annual interest on the Javier bonds. Jan. 1 Sold $1,449,000 Javier bonds at 108. Dec. 31 Accrual of interest at year-end on the Javier bonds.

Your answer is partially correct. Try again. Based on your analysis in part (b), show the balance sheet presentation of the bonds and interest receivable at December 31, 2020. Assume the investments are considered long-term. Indicate where any unrealized gain or loss is reported in the financial statements. (Enter account name only and do not provide descriptive information.) Crane Carecenters Inc. Balance Sheet (Partial) December 31, 2020 Current Assets Interest Receivable 289,800 Investments Debt Investments, at fair value 3,187,800 Date Account Titles and Explanation Debit Credit Jan. 1, 2020 Debt Investments 2,898,000 Cash 2,898,000 Dec. 31, 2020 Interest Receivable 289,800 Interest Revenue 289,800 Jan. 1, 2023 Cash 289,800 289,800 Interest Receivable (To record the receipt of annual interest on Javier bonds) Jan. 1, 2023 v Cash 1,564,920 Debt Investments 1,449,000 115,920 Gain on Sale of Debt Investments (To record the sale of Javier bonds) Dec. 31, 2023 v Interest Receivable 144,900 Interest Revenue 144,900 (b) Your answer is correct. Assume that the fair value of the bonds at December 31, 2020, was $3,187,800. These bonds are classified as available-for-sale securities. Prepare the adjusting entry to record these bonds at fair value. (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, 2020 Fair Value Adjustment-Available-for-Sale 289,800 Unrealized Gain or Loss-Equity 289,800