At the beginning of 2019, Ace Company had the following portfolio of investments in available-for-sale debt securities (

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At the beginning of 2019, Ace Company had the followingportfolio of investments in available-for-sale debt securities (allof which were acquired at par value): Security Cost 1/1/19 FairValue A $50,000 $63,000 B 75,000 71,000 Totals $125,000 $134,000During 2019, the following transactions occurred: Transactions: May3 Purchased C debt securities at their par value for $55,000. July1 Sold all of the A securities for $63,000 plus interest of $1,000.Dec. 31 Received interest of $700 on the B and C securities.Additionally the following information was available: Security12/31/19 Fair Value B $82,000 C 58,000 Required: 1. Prepare journalentries to record the preceding information. 2. What is the balancein the Unrealized Holding Gain/Loss account on December 31, 2019?3. Next Level What justification does the FASB give for itstreatment of unrealized holding gains and losses foravailable-for-sale securities?