Novi purchased ABC bonds on 1/1/22. Data regarding these available-for-sale securities follow:

	Cost	MV
December 31, 2022	$150,000	$130,000
December 31, 2023	150,000	161,000
December 31, 2024	150,000	155,000

On 1/1/25, Novi sold $40,000 (cost) of the securities for $40,100. Market Value of the remaining securities at 12/31/25 was $108,000.

The balance of the Fair Value Adjustment account included on the 12/31/25 balance sheet is:

a.$2,000 debit

b.$2,000 credit

c.$2,100 debit

d.$1,900 credit

e.$1,900 debit