Sooner Company reported the following information on its 2015 balance sheet: Current assets Interest receivable $ 4,000 (Accrued interest on Clemson Company bonds) Long-term Investments Investment in AFS securities $-400,000 (Clemson Company bonds purchased at face value, interest at 12% paid May 31 and Nov. 30) Fair value adjustment (25,000)/$375,000 The following occurred In 2016: April 1 Purchased shares of Hawkeyes Inc., common stock for $150,000 and classified the investment as an AFS security. May 31 Received $24,000 from Clemson Company for semiannual interest payment. June 1 Sold Clemson Company bonds for $370,000. December 31 Recorded any adjusting entries related to investments. The fair value of the Hawkeyes Inc. common stock is $140,000. SHOW WORK (journal entries, t-accounts, computations) Requirement 1: What is the December 31, 2016, balance in the Fair Value Adjustment account(amount and debit/credit)? Show computations for credit. Requirement 2: Determine the following amounts: (A) 2016 net income (adjust the amount given for Investment-related items) (B) 2016 comprehensive income (A) 2016 net income/2016 income from operations $100,000 (B) 2016 comprehensive income Requirement 3: On December 31, 2015, the balance in retained earnings was $700,000. Determine the December 31, 2016 balance in retained earnings. Show computations for credit