Presented below is information taken from a bond investment amortization schedule with related fair values provided. These bonds are classified as available-for-sale.

		12/31/20		12/31/21		12/31/22
Amortized cost		$457,200		$521,200		$526,600
Fair value		$462,700		$510,000		$526,600

(a) Indicate whether the bonds were purchased at a discount or at a premium. DiscountPremium

(b)		Prepare the adjusting entry to record the bonds at fair value at December 31, 2020. The Fair Value Adjustment account has a debit balance of $900 prior to adjustment.
(c)		Prepare the adjusting entry to record the bonds at fair value at December 31, 2021.

No.	Date	Account Titles and Explanation	Debit	Credit
(b)	Dec. 31, 2020
(c)	Dec. 31, 2021