Mead Inc. began operations in Year 1, following is a series of transactions and events involving its long-term debt investments in available-for-sale securities. Year 1

Jan.		20		Purchased Johnson & Johnson bonds for $24,500.
Feb.		9		Purchased notes of Sony for $59,040.
June		12		Purchased bonds of Mattel for $44,500.
Dec.		31		Fair values for debt in the portfolio are Johnson & Johnson, $26,300; Sony, $49,750 and Mattel, $54,550.

Year 2

Apr.		15		Sold all of the bonds of Johnson & Johnson for $27,500.
July		5		Sold all of the bonds of Mattel for $38,650.
July		22		Purchased notes of Sara Lee for $16,700.
Aug.		19		Purchased bonds of Kodak for $18,100.
Dec.		31		Fair values for debt in the portfolio are Kodak, $18,725 Sara Lee, $16,000 and Sony, $62,000.

Year 3

Feb.		27		Purchased bonds of Microsoft for $161,200.
June		21		Sold all of the notes of Sony for $60,800.
June		30		Purchased bonds of Black & Decker for $54,400.
Aug.		3		Sold all of the notes of Sara Lee for $13,350.
Nov.		1		Sold all of the bonds of Kodak for $23,075.
Dec.		31		Fair values for debt in the portfolio are Black & Decker, $57,000 and Microsoft, $159,400.

2. Complete the following table that summarizes the (a) total cost, (b) total fair value adjustment, and (c) total fair value of the portfolio of long-term available-for-sale debt securities at each year-end. (Loss amounts should be indicated with a minus sign.)

Required information (The following information applies to the questions displayed below.) Mead Inc. began operations in Year 1, following is a series of transactions and events involving its long-term debt investments in available-for-sale securities. Year 1 Jan. 20 Purchased Johnson & Johnson bonds for $24,500. Feb. 9 Purchased notes of Sony for $59, 040. June 12 Purchased bonds of Mattel for $44,500. Dec. 31 Fair values for debt in the portfolio are Johnson & Johnson, $26,300; Sony, $49,750; and Mattel, $54,550. Year 2 Apr. 15 Sold all of the bonds of Johnson & Johnson for $27,500. July 5 Sold all of the bonds of Mattel for $38,650. July 22 Purchased notes of Sara Lee for $16,700. Aug. 19 Purchased bonds of Kodak for $18, 100. Dec. 31 Fair values for debt in the portfolio are Kodak, $18,725; Sara Lee, $16,000; and Sony, $62,000. Year 3 Feb. 27 Purchased bonds of Microsoft for $161,200. June 21 Sold all of the notes of Sony for $60,800. June 30 Purchased bonds of Black & Decker for $54,400. Aug. 3 Sold all of the notes of Sara Lee for $13,350. Nov. 1 Sold all of the bonds of Kodak for $23,075. Dec. 31 Fair values for debt in the portfolio are Black & Decker, $57,000; and Microsoft, $159,400. 2. Complete the following table that summarizes the (a) total cost, (b) total fair value adjustment, and (c) total fair value of the portfolio of long-term available-for-sale debt securities at each year-end. (Loss amounts should be indicated with a minus sign.) 12/31/Yr. 1 12/31/Yr. 2 12/31/Yr. 3 Debt Investments Long-Term AFS Securities (cost) Fair value adjustment-AFS Long-Term AFS Securities (Fair value)