Question: At December 31, 2017, the available-for-sale debt portfolio for Carla, Inc. is as follows.
Security Cost Fair Value Unrealized Gain (Loss)
A $35,875 $30,750 $(5,125)
B 25,625 28,700 3,075
C 47,150 52,275 5,125
Total $108,650 $111,725 3,075
Previous fair value adjustment balance Dr. 820
Fair value adjustment Dr. $2,255
On January 20, 2018, Carla, Inc. sold security A for $30,955. The sale proceeds are net of brokerage fees. Prepare the adjusting entry at December 31, 2017, to report the portfolio at fair value.