thatFragrance International, a large perfume manufacturer, reported the following in its 2021 annual report to shareholders:

ACCUMULATED OTHER COMPREHENSIVE INCOME

The components of accumulated other comprehensive income (loss) ("AOCI") included in the accompanying consolidated balance sheets consist of the following:

YEAR ENDED JUNE 30

202120202019

($ inmillions)

Gain on investments (unrealized)

beginning of year$2.9$13.9$6.1

Gain (loss) on investments for theyear(5.0)(18.3)13.0

Provision for deferred incometaxes2.07.3(5.2)

Net gain (loss) on investments, end of year(0.1)2.913.9

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEAR ENDED JUNE 30

202120202019

($ in millions)

CASH FLOWS FROM INVESTING ACTIVITIES

Capitalexpenditures$(203.2)$(192.2)$(180.9)

Acquisition of businesses, net of

acquired cash(18.5)(16.0)(180.5)

Purchases of long-term investments----(15.9)

Proceeds from disposition of long-term

an entinvestments4.71.93.0

NET CASH FLOWS USED FOR

INVESTINGACTIVITIES(217.0)(206.3)(374.3)

Investments sold during 2021 originally cost $3.0 million.

I) What was the after-tax realized gain or loss on the sale of Available for Sale in 2021? Assume a 40% tax rate.

II) Assuming a constant tax rate of 40%, what was the pre-tax accumulated unrealized holding gain or loss on Available for Sale at 7/1/2020?

III) Prepare summary journal entries that Fragrance International recorded on June 30, 2021, to (1) record the total of any necessary changes to the fair value adjustment for Available for Sale debt securities and (2) record the total of any tax effects associated with those changes.