Score: 0 of 10 pts 6 of 11 (5 complete) E16-3 (similar to) Loban Quinta Associates acquired 57,560,000 par value, 8%, 20-year bonds on their date of issue, January 1 of the current year. (Click the icon to view additional information.) Requirement Prepare the fair value adjustment joumal entries at the end of the secon assuming that the fair value of the bonds is equal to $5,070,000 at the e (Round your intermediary and final answers to the nearest whole dollar from any journal entries.) Prepare the joumal entry required to record the fair value adjustment at the end of Year 2. Dece More Info Account Unrealized Gain/Loss - Other Comprehensive Income Fair Value Adjustment - Available-for-Sale Debt Investment The market rate at the time of issue is 14% and interest is paid semiannually on June 30 and December 31. Quinta uses the effective interest rate method to account for this investment. Quinta does not intend to hold the investment until maturity nor will it actively trade the bonds. The fair value of the bonds at the end of the year of acquisition is $5,197,200. The purchase price of the investment in bonds is $4,536,368. The fair value adjustment-available-for-sale debt investment account has a debit balance of S629,480 at the end the year of acquisition. Print Done