Situation 1: Goebel Company acquired a 20% interest in Dobbs Company on December 31, 2018 for $350,000. During 2019 Dobbs Company had net income of $150,000 and paid a cash dividend of $60,000. (Dobbs Company paid $60,000 cash dividend to all of its shareholders.) 12. Based on the information regarding Goebel's investment in Dobbs Company: Fair Value 12/31/18 12/31/19 $350,000 $365,000 Cost $350,000 Equity investment If the Fair Value Adjustment has a debit balance of $8,000, what amount of unrealized holding gain or loss would Goebel Company report in its income statement for the year ended December 31, 2019 related to its investment? a. $7,000 gain. b. $8,000 gain. c. $15,000 gain. d. $23,000 gain. 13. Based on the information given in Question 12, if the Fair Value Adjustment has a credit balance of $8,000, which of the following journal entries is required at December 31, 2019? a. Fair Value Adjustment 15,000 Unrealized Holding Gain or Loss-Income 15,000 b. Fair Value Adjustment 23,000 Unrealized Holding Gain or Loss-Income 23,000 c. Unrealized Holding Gain or Loss-Income 7,000 Fair Value Adjustment 7,000 d. Unrealized Holding Gain or Loss-Equity 23,000 Fair Value Adjustment 23,000