Response to the following problem:
Berroa Co. began operations in 2010. The cost and fair values for its long-term investments portfolio in available-for-sale securities are shown below. Prepare Berroa's December 31, 2011, adjusting entry to reflect any necessary fair value adjustment for these investments.
Cost Fair Value
December 31, 2010 . . . . . . . . . $79,483 $72,556
December 31, 2011 . . . . . . . . . 85,120 90,271