REQUIRED:
a. What dollar amount did Myers and Myers report in 2012 for net income under generally accepted accounting principles?
b. Calculate net income during 2012, using fair market values as the asset and liability valuation bases (i.e., FMV2012 - FMV2011).
c. Calculate economic income for 2012 (i.e., cash received during 2012 plus the change in present value). The discount rate is still 10 percent.
d. Discuss the differences among these three measures of income. Discuss some of the strengths and weaknesses of each measure.