Response to the following questions:
1. At what amount are held-to-maturity investments in bonds reported on the balance sheet?
2. Microsoft Corporation stock recently traded at $26 per share and had earnings per share of $0.92. Determine Microsoft's price-earnings ratio. Round to two decimal places.
3. A company received life insurance proceeds on the death of its president before the end of its fiscal year. It intends to report the amount in its income statement as an extraordinary item. Would this reporting be in conformity with generally accepted accounting principles? Discuss.