Loreal-American Corporation purchased several marketable securities during 2021. At December 31, 2021, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2020, and all are considered securities available-for-sale.

Required:1. Prepare appropriate adjusting entry at December 31, 2021.2. What amounts would be reported in the income statement at December 31, 2021, as a result of the adjusting entry?

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Unrealized Holding Gain (Loss) Cost Fair Value Short term: Blair, Inc. $ 480,000 $ 405,000 $ (75,000) ANC Corporation 450,000 480,000 30,000 $ 885,000 $ (45,000) $ 930,000 Totals Long term: $ 480,000 $ 80,000 (60,000) $ 560,000 Drake Corporation Aaron Industries 720,000 660,000 Totals $ 20,000 $1,200,000 $1,220,000