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Assuming no Fair Value Adjustment (available-for- sale) account balance at the beginning of the year, prepare the adjusting entry at the end of the year if Laura Com- pany’s available-for-sale securities have a fair value
$60,000 below cost. (b) Assume the same information as part (a), except that Laura Company has a debit balance in its Fair Value Adjustment account of $10,000 at the begin- ning of the year. Prepare the adjusting entry at year-end.
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