Obj. 1c B1-19 Reporting available-for-sale securities During its first year of operations, Giovani Foods purchased available-for-sale securities for $37,500. Giovani Foods expects it will sell the securities within the next year. At the end of the year, these securities had a market value of $33,900. Explain how the decrease in fair value of the securities would be reported on Giovani Foods' financial statements for the year? . $6,100 B1-20 Available-for-sale securities; adjustment to fair value Obj. 1c Using the data from Assignment B1-19, assume that Giovani Foods did not purchase or sell any available-for-sale securities during its second year of operations. At the end of the second year, the market value of the available-for-sale securities is $40,000. a. What would be the amount of the adjustment to fair value for the available-for-sale securities? b. After the adjustment is posted to the accounts, what is the balance of the valuation allowance for available-for-sale securities account? C. How would the increase in the fair value of the securities in the second year be reported on Giovani Foods' financial statements?