Pacers Corp. Has the following portfolio of investement securities

Trading Securities	cost	fair values
Fogel inc.,common(5000 shares	225,000	200,000
Petra inc. preferred(3,500 shares	133,000	140,000
Tim Corp.,common(1.000 shares)	180,000	179,000

On October 10,2008, the Fogel shares were sold at a price 54 per share, In addition 3,000 shares of Tigres common stock were purchased at Soper share on November2,2008. The December 31,2008 fair values were: Petra 96,000, tigres 132000, Tim S193,000. All of the securities are classified as trading

Required:

a)Prepare the journal entries to record the sale, purchase, and adjusting entries relating to the trading securities in the last quarter of 2008

b)How would the entries in part (a) change if the securities were classified available for-sale. Explain in a few sentences.