Storm, Inc. purchased the following available-for-sale securities during 2016, its first year of operations:

Name Total Number of Shares Cost

Dust Devil, Inc. 1900 81,700

Gale Co.850 68000

Whirlwind Co.2850114000

Total 263700

The market price per share for the available-for-sale security portfolio on December 31, 2016, was as follows:

Market Price per Share,

Dec. 31, 2016

Dust Devil, Inc. 40

Gale Co. 75

Whirlwind Co. $40 75 4242

a. Provide the journal entry to adjust the available-for-sale security portfolio to fair value on December 31, 2016

b. Describe the income statement impact from the December 31, 2016, journal entry.