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Collin Zucs, CFO of Travel United, Inc., invested some of thefirm's excess cash in the common shares of what he thought werethree undervalued securities. At year-end, he reviewed how theportfolio of securities had done.Security NameCost BasisMarket Valueat Year-EndClassificationMicrosoft Corporation$100,000$134,200Trading securityPfizer, Inc.75,00080,300Trading securityBoeing, Inc.50,00052,800Available-for-sale security$225,000$267,300Required1. Calculate the value that would be assigned to the portfolioof securities on Travel United's balance sheet at year-end.$Answer2. Calculate the income statement effect of the portfolio ofsecurities at year-end.$Answer Answer3. Calculate the income statement effect of the portfolio ofsecurities at year-end assuming all securities are classified asavailable-for-sale.$Answer4. Are the company's reported earnings impacted by whether theportfolio of securities are classified as trading versusavailable-for-sale?AnswerWill the company's income taxes be impacted?