Presented below is information related to the purchases of common stock by vaughn company during 2017.

cost
(at purchase date)

fair value
(at december 31)

investment in arroyo company stock $102,000 $84,000
investment in lee corporation stock 259,000 314,000
investment in woods inc. stock 184,000 193,000
total $545,000 $591,000

(assume a zero balance for any fair value adjustment account.)

(a) what entry would vaughn make at december 31, 2017, to record the investment in arroyo company stock if it chooses to report this security using the fair value option?
(b) what entry would vaughn make at december 31, 2017, to record the investments in the lee and woods corporations, assuming that vaughn did not select the fair value option for these investments?

Problems and applications q3 suppose the demand for french bread falls. illustrate the effect this has on the market for french bread. demand supply price of french bread quantity of french bread d 1 d 2 supply producer surplus in the market for french breadincreases . illustrate the effect the quantity change in french bread has on the market for flour. demand supply price of flour quantity of flour d 1 d 2 s 1 s 2 producer surplus in the market for flour .

For each separate case below, follow the 3-step process for adjusting the prepaid asset account at december 31. step 1: determine what the current account balance equals. step 2: determine what the current account balance should equal. step 3: record the december 31 adjusting entry to get from step 1 to step 2. assume no other adjusting entries are made during the year. a. prepaid insurance. the prepaid insurance account has a $4,700 debit balance to start the year. a re- view of insurance policies and payments shows that $900 of unexpired insurance remains at year-end. b. prepaid insurance. the prepaid insurance account has a $5,890 debit balance at the start of the year. a review of insurance policies and payments shows $1,040 of insurance has expired by year-end. c.prepaidrent.onseptember1ofthecurrentyear,thecompanyprepaid$24,000 for 2 years of rentfor facilities being occupied that day. the company debited prepaid rent and credited cash for $24,000.

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