145.Following is data for the available-for-sale securities held by Lindy Company as of December 31:
Name
|
Number of Shares
|
Cost
per Share
|
Fair Value
per Share
|
Total Cost
|
Total
Fair Value
|
Laurie, Inc.
|
1,200
|
$15.00
|
$15.40
|
|
|
Scott Corp.
|
800
|
8.00
|
8.25
|
|
|
Stephanie Company
|
700
|
14.40
|
13.50
|
|
|
Timmer Company
|
900
|
12.35
|
10.77
|
|
|
Total
|
|
|
|
|
|
(a) Complete the table above to find the total cost and fair value for the company’s availableforsale securitiesportfolio.
(b) Calculate and record the required December 31 adjustment.
(c) Explain how the adjustment from step (2) is reported on Lindy’s financial statements146.(a) Discuss factors contributing to the trend to fair value accounting.
(b)What are some of the disadvantages associated with using fair value?
147.On April 1, ValueTime, Inc. had a market price per common share of $24. For the previous year, ValueTime paid a
148.Nicer Corporation reported net income of $50,000 in the current year. There are 10,000 shares of $100 par, 6%preferred stock and 50,000 shares of $2 par common stock outstanding. During the year, Nicer paid the preferredstockholders a $6 per share dividend and also paid $30,000 to common shareholders. The market value of Nicer’sstock is preferred stock, $95, and common stock, $5.00.
(a) Calculate Nicer’s dividend yield.
(b) Why does the dividend yield vary widely across firms?
149.Gerardo Company had a net income of $75,000 and other comprehensive income of $12,500 for the year. OnJanuary 1, the retained earnings balance was $525,000 and the accumulated other comprehensive income balancewas $55,000. Determine the (a) comprehensive income for the year, (b) retained earnings balance on December31, and (c) the accumulated other comprehensive income on December 31.