Sharp, Inc., had the following portfolio of investment securities on January 1, 2012:

Appropriate adjustments have been made in prior years. No securities were bought or sold during 2012. On December 31, 2012, Sharp's portfolio of securities had the following fair market values:

Security          Fair Market Value (12/31/12)

1                                              $ 650

2                                              1,200

3                                              1,700

4                                              2,250

5                                              1,850

Prepare the necessary adjusting entry (or entries) on December 31,2012.

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Fair Market Value (1/1/12) Historical Cost Type Debt Equity Classification Trading Trading Trading Available-for-sale Held-to-maturity Security S 800 S1,000 1,250 1,700 2,200 1,100 3 4 1,650 2,150 1,750 Debt Debt Debt 1,800