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1. The investments account at 12/31/22 contains stocks that were all purchased during 2021. In discussions with the CFO, you determine that they were made to invest excess cash. The company expects that they will need the cash within the next year. Here is information that you gather regarding that portfolio (in 000s): Company Initial Investment Cost Market Value at 12/31/22

Market Value at 12/31/21

MPT $350 $370 $365 LFR 50 75 90 LF 100 102 82

You also discuss with the CFO the Investment in Damian Corporation. You discover that this Investment was first made 3 years ago on 1/1/20 and that the investment cost was $1,100,000. The investment in 45% of the voting stock of Damian was made in order to be able to have representation on its board since Damian is a key supplier of the inventory that Ronald sells. Dillard wants to have a say in the quality control and other decisions that Damian makes. You determine that the book value of equity of Damian was $2,300,000 on 1/1/20. Any fair value/book value difference is attributable to a patent with a 5 year remaining life at 1/1/20. You also determine that Ronald has been recording dividend revenue when it receives payment. During 2020, Ronald received $50,000 in dividends, in 2021, $60,000 and in 2022, $80,000. Damian has reported income during 2020, 2021 and 2022 of $200,000, $100,000 and $250,000 respectively.

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