Marley Company Had the Following Portfolio of Securities at the End

Marley Company had the following portfolio of securities at the end of its first year of operations:
$\begin{array}{llll}\text { Year-End }\\\text { Security }&\text { Classification }&\text { Cost }&\text { Market Value }\\\text { A } & \text { Trading } & \$ 18,000 & \$ 23,000 \\\text { B } & \text { Trading } & \$ 25,000 & \$ 27,000\end{array}$
(1) Provide the entry necessary to adjust the portfolio of securities to market value.

(2) After adjusting the securities to market, Marley elects to reclassify Security B as an available-for-sale security. On the date of the transfer, Security B's market value is $26,500. Provide the journal entry to reclassify Security B.