For several years fister links products has held microsoft bonds, considered by the company to be securities available-for-sale. the bonds were acquired at a cost of $500,000. at the end of 2018, their fair value was $610,000 and their amortized cost was $510,000. at the end of 2019, their fair value was $600,000 and their amortized cost was $520,000.

at what amount will the investment be reported in the december 31, 2019, balance sheet? what adjusting entry is required to accomplish this objective (ignore interest)?

( explain how did you get the adjusting entry/ steps)

Your company is starting a new r& d initiative: a development of a new drug that dramatically reduces the addiction to smoking. the expert team estimates the probability of developing the drug succesfully at 60% and a chance of losing the investment of 40%. if the project is successful, your company would earn profits (after deducting the investment) of 9,000 (thousand usd). if the development is unsuccessful, the whole investment will be lost -1,000 (thousand usd). your company's risk preference is given by the expected utility function: u(x) v1000 +x, where x is the monetary outcome of a project. calculate the expected profit of the project . calculate the expected utility of the project . find the certainty equivalent of this r& d initiative . find the risk premium of this r& d initiative e is the company risk-averse, risk-loving or risk-neutral? why do you think so?