Rothchild Capital Partners, Ltd. acquired the following equity investments at the beginning of year 1 to be held in a trading portfolio.

	Pinecone			ASK
Description	Brothers			Company
Number of shares	16,500			23,100
Market price per share	x	$31		x	$16
Share acquisition price		$511,500			$369,600

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

	Pinecone	ASK
Fair Value	Brothers	Company
End of year 1	$22	$19
End of year 2	$30	$27

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

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

Assume that Rothchild sells 18, 100 ASK Company shares for $ 12 per share at the beginning of year 2. Prepare the journal entry required to record the sale. Rothchild does not correct the fair value adjustment account at this time.

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

What is the effect of these investments on earnings in years 1 and 2?