Hestor Equipment Corporation acquired the following equity investments at the beginning of year 1 to be held in an available-for-sale portfolio.

Description	Wyatt Company			Frost Group
Number of shares	10,640			8,435
Market price per share	x	$52		x	$91
Share acquisition price		$553,280			$767,585

Share prices at the end of years 1 and 2 are presented below.

	Wyatt		Frost
Fair Value	Company		Group
End of year 1		$58		$82
End of year 2		$53		$87

A. Prepare the journal entry to record the acquisition of the investments.

B. Prepare the journal entry to record the end of year 1 adjusting entry.

C. Assume that Hestor sells 5,600 Wyatt Company shares for $ 60per share at the beginning of year 2. Prepare the journal entry required to record the sale. Hestor does not correct the fair value adjustment account at this time.

D. Prepare the journal entry to record the year 2 adjusting entry.