Why is the fair value adjustment of $40,000 later subtracted from the unrealized holding gain of $35,000? I would think that it would be added.

\begin{tabular}{lrrr} \hline Lehman Inc. bonds 6\% & $80,000 & $105,000 & $25,000 \\ Woods Co. bonds 7\% & 120,000 & 135,000 & 15,000 \\ Total of portfolio & $200,000 & $240,000 & 40,000 \\ Previous fair value & & & 0 \\ adjustment balance & & \\ Fairvalueadjustment-Dr. & & & \\ \hline \end{tabular} The entry to record the unrealized holding gain in 2025 is as follows. December 31, 2025 Fair Value Adjustment 40,00040,000 Unrealized Holding Gain or Loss40,000 Equity If Open Company reports net income in 2025 of $350,000, it presents a statement of comprehensive income as shown in Illustration16.25. ILLUSTRATION 16.25 Statement of Comprehensive Income (2025) Open Company Open Company Statement of Comprehensive Income For the Year Ended December 31, 2025 At December 31,2025 , Open Company reports on its balance sheet debt investments of $240,000 (cost $200,000 plus fair value adjustment of $40,000 ) and accumulated other comprehensive income in stockholders' equity of $40,000. The closing entry to transfer the unrealized holding gain-equity to accumulated other comprehensive income is as follows. December 31, 2025 (Closing Entry) Unrealized Holding Gain or Loss-Equity 40,000 Accumulated Other Comprehensive 40,000 Income On August, 10, 2026, Open Company sells its Lehman Inc. bonds for $105,000 and realizes a gain on the sale of $25,000 ( $105,000$80,000 ). The journal entry to record this transaction is as follows. The entry to record the unrealized holding gain or loss in 2026 is as follows. December 31, 2026 Unrealized Holding Gain or Loss-Equity 5,000