You are engaged in the audit of the financial statements of Oak Hill Company for the year ended December 31, 19X1. Oak Hill Company sells lumber and building supplies at wholesale and retail; it has total assets of \($1,000,000\) and a stockholders' equity of \($500,000.\) The company's records show an investment of \($100,000\) for 100 shares of common stock of one of its customers, the Custom Building Corporation. You learn that Custom Building Corporation is closely held and that its capital stock, consisting of 1,000 shares of issued and outstanding common stock, has no published or quoted market value. Examination of your client's cash disbursements record reveals an entry of a check for \($100,000\) drawn on January 12, 19X1, to Mr. Leland Bouldin, who is said to be the former holder of the 100 shares of stock. Mr. Bouldin is president of the Oak Hill Company. Oak Hill Company has no other investments. 

1. List the auditing procedures you would employ in connection with the \($100,000\) investment of your client in the capital stock of the Custom Building Corporation. 

2. Discuss the presentation of the investment on the balance sheet, including its valuation.