[The following information applies to the questions displayed below.] Stoll Co.'s long-term available-for-sale portfolio at the start of this year consists of the following. Available-for-Sale Securities Company A bonds Company B notes Company C bonds Cost $531,500 159,040 663,000 Fair Value $ 495,000 145,000 641,100 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 $78,200. July 6 Purchased bonds of Company X for $120,700. Nov. 13 Purchased notes of Company 2 for $268,000. Dec. 9 Sold all of the bonds of Company A for $515,200. The fair values at December 31 are B, $83,500; C, $605,700; X, $108,000; and Z, $280,000. Fair Value Adjustment Computation - Available-for-Sale Securities December 31 AFS Securities Cost Fair Value Unrealized Amount Gain or Loss? Company B notes $ 79,520 83,500 663,000 641,100 X Company C bonds Company X bonds Company Z notes 120,700 108,000 268,000 280,000 Total $ 1,131,220 $ 1,112,600 $ 18,620 Loss Required 2 December 31 Balance in the Fair Value Adjustment account 18,620 Credit Balance at beginning of year in the Fair Value Adjustment account 72,440 Credit December 31 required adjustment to the Fair Value Adjustment account $ 53,820 X Debit Fair Value Adjustment(AFS) Balance at beginning of year 72,440 Dec 31 year end adjustment 53,820 Balance at end of year 18,620