Problem 3 On January 1, 2017 a company purchased the following debt securities as an investment: Stated Effective Company Face Interest Interest Interest Purchase Name Value Rate Rate Payment Date Maturity Date Price Even December 31. $100,000 5% 5% December 31 2030 $100,000 Low December 31 S100,000 4% 6% December 31 2025 $86,397 On December 31, 2020, the total market value for the portfolio is $195,000 On December 31, 2021, the market value of each of the securities is as follows: Even $102,000 Low $94,000 On December 31, 2022, the company sells the investment in Low for $96,000 and the market value of Even is $99,500. 1. Determine the following amounts, assuming both securities are Held-to-Maturity Securities: a. Interest income, 2021 b. Unrealized Gain/Loss on Held-to-Maturity Securities, 2021 c. Gain/Loss on sale of Low, 2022 2. Determine the following amounts, assuming both securities are Trading Securities: a. Unrealized Gain/Loss on Held-to-Maturity Securities, 2021 b. Interest income, 2022 c. Gain/Loss on sale of Low, 2022 3. Determine the following amounts, assuming both securities are Available-for-Sale Securities: a. Gain/Loss on sale of Low, 2022 b. Balance in the Fair Value Adjustment - Available-for-Sale Securities, December 31, 2022