[The following information applies to the questions displayed below] 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 $29,000. February 9 Purchased Sony notes for $63,090. June 12 Purchased Mattel bonds for $49,000. December 31 Fair values for debt in the portfolio are Johnson & Johnson, $31,700; Sony, $54,450; and Mattel, $56,650. Year 2 April 15 Sold all of the Johnson & Johnson bonds for $32,000. July 5 Sold all of the Mattel bonds for $41,800. July 22 Purchased Sara Lee notes for $20,300. August 19 Purchased Kodak bonds for $21,250. December 31 Fair values for debt in the portfolio are Kodak, $22,300; Sara Lee, $20,500; and Sony, $64,000. Year 3 February 27 Purchased Microsoft bonds for $160,400. June 21 Sold all of the Sony notes for $64,400. June 30 Purchased Black & Decker bonds for $58,900. August 3 Sold all of the Sara Lee notes for $17,400. November 1 Sold all of the Kodak bonds for $20,000. December 31 Fair values for debt in the portfolio are Black & Decker, $59,700; and Microsoft, $160,300.