QUESTION 1 Security 1 Cost 18 Fair value Year 1 13 Classification trading trading available for sale available for sale Fair value year 2 9 10 2 8 9 15 17 3 4 17 24 28 13 Provide adjustment to fair value at end of Year 1 Record sale of half of Security 1 for $ 8 and half of Security 4 Provide adjustment to fair value at end of Year 2 for $ 15 during Year 2