Question 3: Perez Company began operations in 2020. Since then, it has reported the following gains and losses for its equity investments in on the income statement: 2020 2021 2022 Gains (losses) from sale of securities SI5,000 S (20,000) $14,000 Unrealized holding losses on valuation of securities (30,000) (15,000) Unrealized holding gain on valuation of securities 10.000 At January 1, 2023, Percz owned the following trading securities: COST BKD Common (15,000 shares @ 530) $450,000 LRF Preferred (2,000 shares @ $105) 210,000 During 2023, the following events occurred: 1. Sold 5,000 shares of BKD for $170,000. 2. Acquired 1,000 shares of Horton Common for $40 per share. Brokerage commissions totaled $1,000. At 12/31/23, the fair values for Perez's investments were: BKD Common, $28 per share LRF Preferred, $110 per share Horton Common, $45 per share (a) Compute the balance in the Fair Value Adjustment account at December 31, 2022 (after the adjusting entry for 2022 is made). (b) Compute the aggregate cost and fair values for Perez's securities portfolio at 12/31/23. (e) Prepare the necessary adjusting entry based upon your analysis in (b) above