At December 31 2017 the available-for-sale securities for Allison Inc. are as follows. $\begin{array}{lrr}\underline{\text{ Security }}& \underline{\text{ Cost }}& \underline{\text{ Fair Value }}\\ \text{X}& \$27,500& \$24,000\\ \text{Y }& 12,500& 13,000\\ \text{Z}& \underline{23,000}& \underline{18,000}\\ & \underline{\$63,000}& \underline{\$55,000}\end{array}$ Instructions
(a) Prepare the adjusting entry at December 31 2017 to report the securities at fair value.
(b) Show the balance sheet and income statement presentation at December 31 2017 after adjustment to fair value. The securities are considered to be a long-term investment.

Long-Term Investment

Investments held for an extended period, typically exceeding one year, such as stocks, bonds, or real estate, aiming for prolonged growth.

Fair Value

A valuation of an asset or liability determined by the price it would fetch if sold, or the cost to transfer it, in a smooth transaction among participants in the market.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the appropriate periods.