S&L Financial buys and sells securities which it classifies as available-for-sale. On December 27, 2021, S&L purchased Coca-Cola bonds at par for $875,000 and sold the bonds on January 3, 2022, for $880,000. At December 31, the bonds had a fair value of $873,000, and S&L has the intent and ability to hold the investment until fair value recovers.

Record the entry for fair value adjustment of December 31, 2021.

Record the entry to adjust to fair value on the date of sale.

Record the entry to reverse the previous fair value adjustment.

Record the entry for sale of investment in Coca Cola bonds.