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Exercise 17-7On December 21, 2017, Riverbed Company provided you with thefollowing information regarding its equity investments.December 31, 2017Investments (Trading)CostFair ValueUnrealized Gain (Loss)Clemson Corp. stock$18,900$17,900$(1,000)Colorado Co. stock9,0008,000(1,000)Buffaloes Co. stock18,90019,540640Total of portfolio$46,800$45,440(1,360)Previous fair value adjustment balance0Fair value adjustment—Cr.$(1,360)During 2018, Colorado Company stock was sold for $8,550. The fairvalue of the stock on December 31, 2018, was Clemson Corp.stock—$18,010; Buffaloes Co. stock—$19,430. None of the equityinvestments result in significant influence.(a)Prepare the adjusting journal entry needed on December 31,2017.(b)Prepare the journal entry to record the sale of the ColoradoCo. stock during 2018.(c)Prepare the adjusting journal entry needed on December 31,2018.