The following information is available for Barkley Company at December 31, 2008, regarding its investments.

Instructions
(a) Prepare the adjusting entry (if any) for 2008, assuming the securities are classified as trading.
(b) Prepare the adjusting entry (if any) for 2008, assuming the securities are classified as available-for-sale.
(c) Discuss how the amounts reported in the financial statements are affected by the entries in (a) and(b).

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Securities Cost $40,000 25,000 $65,000 Fair Value $48,000 22,000 $70,000 3,000 shares of Myers Corporation Common Stock 1,000 shares of Cole Incorporated Preferred Stock