Stoll Co.'s long-term available-for-sale portfolio at the start of this year consists of the following.

Available-for-Sale Securities	Cost			Fair Value
Company A bonds	$	530,300		$	490,000
Company B notes		159,300			146,000
Company C bonds		663,100			648,730

Stoll enters into the following transactions involving its available-for-sale debt securities this year.

Jan.		29		Sold one-half of the Company B notes for $78,390.
July		6		Purchased bonds of Company X for $127,800.
Nov.		13		Purchased notes of Company Z for $268,000.
Dec.		9		Sold all of the bonds of Company A for $518,800.

The fair values at December 31 are B, $83,200 C, $607,600 X, $109,000 and Z, $279,000.

Required: 1. Prepare journal entries to record these transactions, including the December 31 adjusting entry to record the fair value adjustment for the long-term investments in available-for-sale securities. 2. Determine the amount Stoll reports on its December 31 balance sheet for its long-term investments in available-for-sale securities.

WHAT IS THE BEGINNING FAIR VALUE ADJUSTMENT AND MONTH END REQUIRED ADJUSTMENT?

Fair Value Adjustment Computation - Available-for-Sale Securities
December 31 AFS Securities	Cost	Fair Value	Unrealized Amount	Gain or Loss?
Company B notes	79,650	83,200
Company C bonds	663,100	607,600
Company X bonds	127,800	109,000
Company Z notes	268,000	279,000
Total	$1,138,550	$1,078,800	$59,750	Loss
Required 2 December 31 Balance in the Fair Value Adjustment account			$59,750	Credit
Balance at beginning of year in the Fair Value Adjustment account			???????	Credit
December 31 required adjustment to the Fair Value Adjustment account			???????	Debit
			Fair Value Adjustment(AFS)
-1				0
-1			0
1	Balance at end of year			59,750