1)

Richardson Corp.'s trading securities portfolio is as follows: Date: Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 Stuart Inc. Fair value : $ 310,000 | 301,000 | 0 Stuart Inc. Cost : $ 190,000 | 190,000 | 0 Rufus Inc. Fair value : $ 295,000 | 0 | 0 Rufus Inc. Cost : $ 255,000 | 0 | 0 No dividends were received from any investments. Ignoring income taxes, what amount should be reported as income in Richardson Corp. 2015 Income statement?

2)

Boston-Upp Corporation makes an equity-method investment in Wrap, Inc. at a purchase price of $4.1 million cash, representing 25% (at book value) of Wrap. During the year, Wrap reports net income of $1 million and Boston-Upp receives $900,000 of cash dividends from Wrap Inc. At the end of the year, the market value of Boston-Upps investment is $3.9 million. At year end, what does Boston-Upp report on its balance sheet for its investment in Wrap Inc.?

		A) $4,035,000
		B) $4,100,000
		C) $4,125,000
		D) $3,450,000
		E) None of the above