Mead Incorporated 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

January 20	Purchased Johnson & Johnson bonds for $29,500.
February 9	Purchased Sony notes for $63,540.
June 12	Purchased Mattel bonds for $49,500.
December 31	Fair values for debt in the portfolio are Johnson & Johnson, $32,300; Sony, $55,750 and Mattel, $57,850.

Year 2

April 15	Sold all of the Johnson & Johnson bonds for $32,500.
July 5	Sold all of the Mattel bonds for $42,150.
July 22	Purchased Sara Lee notes for $18,700.
August 19	Purchased Kodak bonds for $21,600.
December 31	Fair values for debt in the portfolio are Kodak, $22,475 Sara Lee, $21,000 and Sony, $65,000.

Year 3

February 27	Purchased Microsoft bonds for $158,200.
June 21	Sold all of the Sony notes for $64,800.
June 30	Purchased Black & Decker bonds for $59,400.
August 3	Sold all of the Sara Lee notes for $17,850.
November 1	Sold all of the Kodak bonds for $26,325.
December 31	Fair values for debt in the portfolio are Black & Decker, $60,000 and Microsoft, $160,400.

Problem 15-2A (Algo) Part 2

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.)

Debt Investments 12/31/Year 1 12/31/Year 2 12/31/Year 3 $ 142,540 $ 217,600 Long-Term AFS Securities (cost) Fair value adjustment-AFS 3,360 4,635 10,895 Long-Term AFS Securities (Fair value) $ 145,900 $ 4,635 $ 228,495