Number of Shares Name Cost Arden Enterprises Inc. $150,000 5,000 French Broad Industries Inc. 2,750 66,000 Pisgah Construction Inc. 1,600 104,000 Total $320,000 Market Price per Share, Dec. 31, Year 1 Arden Enterprises Inc. $34 French Broad Industries Inc. 26 Pisgah Construction Inc. 60

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A: Pass necessary adjusting entry for valuation of trading securities transaction.

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A:

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