Problem: During its first year of operations, Giovani Foods purchased available-for-sale securities for $37,500. Giovani Foods expects it will sell the securities within the next year. At the end of the year, these securities had a market value of $33,900. Explain how the decrease in fair value of the securities would be reported on Giovani Foods' financial statements for the year? The available-for-sale securities would be reported as a fill in the blank 1 of 6 current assets on the balance sheet with a cost of $37,500 less the fill in the blank 2 of 6 valuation allowance for available-for-sale securities of fill in the blank 3 of 6$ 3,600 for a net fair value of $33,900. The fill in the blank 4 of 6 of fill in the blank 5 of 6$ would be reported as a reduction of fill in the blank 6 of 6 stockholders' equity on the balance sheet.