Question: Mandy Financial buys and sells securities which it classifies as available - for - sale. Before adjusting for fair value at year - end, the

Mandy Financial buys and sells securities which it classifies as available-for-sale. Before adjusting for fair
value at year-end, the bond's fair value adjustment has a debit balance of $23,000. On December 31,
2024, a bond has an amortized cost of $770,0000 and the bond's fair value is now $720,000. To adjust the
securities to fair value, Mandy should record the following entry:
Debit Fair Value Adjustment at $27,000.
Debit Fair Value Adjustment at 23,000.
Credit Fair Value Adjustment at $73,000.
Credit Fair Value Adjustment at $50,000.
Mandy Financial buys and sells securities which it classifies as available-for-sale.

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