Sure Corp. operates under ideal conditions of certainty. It acquired its sole asset on January $1,2015.$ The asset will yield $$600$ cash at the end of each year from $2015$ to $2017,$ inclusive, after which it will have no market value and no disposal costs. The interest rate in the economy is $6\%.$ Purchase of the asset was financed by the issuance of common shares. Sure Corp. will pay a dividend of $$50$ at the end of $2015$ and $2016.$

Required

a$.$ Prepare a balance sheet for Sure Corp. at the end of $2015$ and an income statement for the year ended December $31,2015.$

b$.$ Prepare a balance sheet for Sure Corp. as at the end of $2016$ and an income statement for the year ended December $31,2016.$

c$.$ Under ideal conditions, what is the relationship between present value $($i$.$e$.,$ value in use$)$ and market value $($i$.$e$.,$ fair value$)?$ Why? Under the real conditions in which accountants operate, to what extent do market values provide a way to implement fair value accounting? Explain.

d$.$ Under real conditions, present value calculations tend to be of low reliability. Why? Does this mean that present value$-$based accounting for assets and liabilities is not decision useful? Explain.