Refer to the data provided in E8-8. REQUIRED:

a. Assume that the stock of Thayers International and Bayhe Enterprises is considered mar¬ ketable, and Mystic Lakes Food Company wishes to hold all investments indefinitely. Prepare journal entries to record these transactions.

b. Assume that the market values on December 31, 1996, of Thayers International and Bayhe Enterprises are $25 and $32, respectively. Prepare the entry to adjust the company’s long¬ term investments to market value.