On January 1, 20Y7, Valuation Allowance for Available-for-Sale Investments had a zero balance. On December 31, 20Y7,

Question:

On January 1, 20Y7, Valuation Allowance for Available-for-Sale Investments had a zero balance. On December 31, 20Y7, the cost of the available-for-sale securities was $19,040, and the fair value was $22,870. Prepare the adjusting entry to record the unrealized gain or loss on available-for-sale investments on December 31, 20Y7.