Date	Account Titles and Explanation	Debit	Credit
Jan. 2, 2014

(b) Prepare the journal entries to recognize the change in the fair value of the call option as of March 31, 2014. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Mar. 31, 2014
(To record the time value change.)
Mar. 31, 2014
(To record the change in intrinsic value.)

(c) What was the effect on net income of entering into the derivative transaction for the period January 2 to March 31, 2014?

Unrealized Holding Gain Loss

$

2.

During 2014, Nilsen Company started a construction job with a contract price of $1,648,000. The job was completed in 2016. The following information is available.

2014	2015	2016
Costs incurred to date	$412,000	$849,750	$1,102,100
Estimated costs to complete	618,000	283,250	0
Billings to date	309,000	927,000	1,648,000
Collections to date	278,100	834,300	1,467,750

Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.

2014	2015	2016
Gross profit recognized	$	$	$

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Prepare all necessary journal entries for 2015, assuming all costs are on account. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit
(To record costs of construction)
(To record progress billings)
(To record collections)
(To recognize revenue and gross profit)

Operating Division
DeMent Publishing Division - Revenue to be recognized in fiscal year 2014	$
Ankiel Securities Division - Revenue to be recognized in fiscal year 2014	$
Depp Advisory Division - Revenue for 1st Quarter of fiscal year 2014	$