1)

Nichols Enterprises has an investment in 27,000 bonds of Elliott Electronics that Nichols accounts for as a security available-for-sale. Elliott bonds are publicly traded, and The Wall Street Journal quotes a price for those bonds of $14 per bond, but Nichols believes the market has not appreciated the full value of the Elliott bonds and that a more accurate price is $24 per bond. Nichols should carry the Elliott investment on its balance sheet at:

Multiple Choice

• Either $378,000 or $648,000, as either are defensible valuations.

• $648,000.

• $378,000.

• $513,000, the midpoint of Nichols's range of reasonably likely valuations of Elliott.

2)

Zwick Company bought 25,500 shares of the voting common stock of Handy Corporation in January 2021. In December, Handy announced $201,100 net income for 2021 and declared and paid a cash dividend of $9.00 per share on all 209,000 shares of its outstanding common stock. Zwick Company's dividend revenue from Handy Corporation in December 2021 would be:

Multiple Choice

• $ 0.

• $24,536.

• $229,500.

• None of these answer choices are correct.