(a) Assuming no Securities Fair Value Adjustment (Available- for-Sale) account balance at the beginning of the year, prepare the adjusting entry at the end of the year if Laura Company’s available-for-sale securities have a market value $60,000 below cost.

(b) Assume the same information as part (a), except that Laura Company has a debit balance in its Securities Fair Value Adjustment (Available for-Sale) account of $10,000 at the beginning of the year. Prepare the adjusting entry at year-end.