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[The following information applies to the questions displayed below.) During January 2016, Optimum Glass Company purchased the following securities as its long-term available-for-sale securities investment
[The following information applies to the questions displayed below.) During January 2016, Optimum Glass Company purchased the following securities as its long-term available-for-sale securities investment portfolio: D Corporation common stock: 12,800 shares (96,700 outstanding) at $9 per share F Corporation bonds: $314,000 (5-year, 6 percent) purchased at par (not to be held to maturity) Subsequent to acquisition, the following data were available: 2016 2017 $ 40,000 $366,000 $ 50,000 $ 567,000 Net income reported at December 31: D Corporation F Corporation Dividends and interest paid during the year: D Corporation common stock cash dividends (per share) F Corporation bonds interest Fair value at December 31: D Corporation common stock (per share) F Corporation bonds $ 0.50 $ 18,840 $ 0.60 $ 18,840 $ 8.00 $266,000 $ 9.50 $276,000 2. value: 10.00 points Required information Required: 1. What accounting method should be used for the investment in D common stock? F bonds? Accounting Method D common stock F bonds
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