On February $10,15,000$ shares of Sting Company are acquired at a price of $\$ 25$ per share plus a $\$ 150$ brokerage commission. On April 12, a $0.40-per-share dividend was received on the Sting Company stock. On May 29, 6,000 shares of the Sting Company stock were sold for$\$32$ per share less a $\$ 120$ brokerage commission. Prepare the journal entries for the original purchase, the dividend, and the sale under the cost method.

On December 31,2015 , Valur Co. had the following available-for-sale investment disclosure within the Current Assets section of the balance sheet:

$$\begin{array}{lr} \text{Available-for-sale investments (at cost)} & \$ 145,000 \\ \text{Plus valuation allowance for available-for-sale investments} & 40,000 \\ \text{Available-for-sale investments (at fair value)} & \$ 185,000 \\ \end{array}$$

There were no purchases or sales of available-for-sale investments during 2016 . On December 31, 2016, the fair value of the available-for-sale investment portfolio was $\$ 200,000$. The net income of Valur Co. was $\$ 210,000$ for 2016.

Compute the comprehensive income for Valur Co, for the year ended December 31, 2016.

On May 12, 2016, Chewco Co. purchased 2,000 shares of Jedi Inc. for $\$ 112$ per share, including the brokerage commission. The Jedi investment was classified as an available-for-sale security. On December 31, 2016, the fair value of Jedi Inc. was $\$ 124$ per share. The net income of Chewco Co. was $\$ 50,000$ for 2016 .

Compute the comprehensive income for Chewco Co. for the year ended December 31 , 2016.

$\text{\textcolor{#4257b2}{eBay Inc.}}$ developed a Web-based marketplace at http://www.ebay.com, in which individuals can buy and sell a variety of items. eBay also acquired $\text{\textcolor{#4257b2}{PayPal}}$, an online payments system that allows businesses and individuals to send and receive online payments securely. In a recent annual report, eBay published the following dividend policy:

$$\small{\textit{We have never paid cash dividends on our stock and currently anticipate that we will continue to retain any future earnings for the foreseeable future.}}$$

$\hspace{15pt}$Given eBay’s dividend policy, why would an investor be attracted to its stock?

The market price for Microsoft Corporation closed at $\$ 26.71$ and $\$ 25.96$ on December 31 , current year, and previous year, respectively. The dividends per share were $\$ 0.80$ for current year and $\$ 0.64$ for previous year.

a. Determine the dividend yield for Microsoft on December 31, current year, and previous year. (Round percentages to two decimal places.) b. Interpret these measures.