$1.$ The argument among accountants and financial statement users over the proper valuation procedures for assets and liabilities resulted in the release of SFAS No $115.$ Both historical cost and current value accounting have critics and each can cause financial statements to not be faithfully represented.

a$.$ Determine how current values might be determined for investments, land, buildings, equipment, patents, copyrights, trademarks and franchises.

b$.$ How might the use of current values in the accounting records cause earnings volatility?

c$.$ Discuss how management might manage earnings using current cost data.

d$.$ How do the requirements established in SFAS $157$ affect the use of fair value measurement in financial statements?