Junk bonds: JC Penney has a CCC- rated corporate bond outstanding. There are 4 years remaining to maturity. The bond has a 5.75% coupon and closed at 85.372. Find the bond’s yield to maturity.

Consider a regenerative vapor power cycle with two feedwater heaters, a closed one and an open one, and reheat. Steam enters the first turbine stage at 12 MPa, 480°C, and expands to 2 MPa. Some steam is extracted at 2 MPa and fed to the closed feedwater heater. The remainder is reheated at 2 MPa to 440°C and then expands through the second-stage turbine to 0.3 MPa, where an additional amount is extracted and fed into the open feedwater heater operating at 0.3 MPa.

The steam expanding through the third-stage turbine exits at the condenser pressure of 20 kPa. Feedwater leaves the closed heater at 210°C, 12 MPa, and condensate exiting as saturated liquid at 2 MPa is trapped into the open feedwater heater. Saturated liquid at 0.3 MPa leaves the open feedwater heater. Assume all pumps and turbine stages operate isentropically.

Determine for the cycle:

(a) the heat transfer to the working fluid passing through the steam generator, in kJ per kg of steam entering the turbine.

(b) the percent thermal efficiency.

(c) the heat transfer from the working fluid passing through the condenser to the cooling water, in kJ per kg of steam entering the first-stage turbine.

The Collins Corporation purchased office equipment at the beginning of 2019 and capitalized a cost of $2,200,000. This cost included the following expenditures:

The company estimated an eight-year useful life for the equipment. No residual value is anticipated. The double-declining-balance method was used to determine depreciation expense for 2019 and 2020.

In 2021, after the 2020 financial statements were issued, the company decided to switch to the straight-line depreciation method for this equipment. At that time, the company’s controller discovered that the original cost of the equipment incorrectly included one year of annual maintenance charges for the equipment.

Required:
1 & 2. Ignoring income taxes, prepare the appropriate correcting entry for the equipment capitalization error discovered in 2021 and any 2021 journal entries related to the change in depreciation methods. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar.)

The Collins Corporation purchased office equipment at the beginning of 2019 and capitalized a cost of $2,308,000. This cost included the following expenditures:

The company estimated an eight-year useful life for the equipment. No residual value is anticipated. The double-declining-balance method was used to determine depreciation expense for 2019 and 2020.

In 2021, after the 2020 financial statements were issued, the company decided to switch to the straight-line depreciation method for this equipment. At that time, the company’s controller discovered that the original cost of the equipment incorrectly included one year of annual maintenance charges for the equipment.

Required:
1 & 2. Ignoring income taxes, prepare the appropriate correcting entry for the equipment capitalization error discovered in 2021 and any 2021 journal entries related to the change in depreciation methods. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar.) requirement 3 Record the 2021 adjusting entry for depreciation.

The Collins Corporation purchased office equipment at the beginning of 2019 and capitalized a cost of $2,344,000. This cost included the following expenditures:

The company estimated an eight-year useful life for the equipment. No residual value is anticipated. The double-declining-balance method was used to determine depreciation expense for 2019 and 2020.

In 2021, after the 2020 financial statements were issued, the company decided to switch to the straight-line depreciation method for this equipment. At that time, the company’s controller discovered that the original cost of the equipment incorrectly included one year of annual maintenance charges for the equipment.

Required:
1 & 2. Ignoring income taxes, prepare the appropriate correcting entry for the equipment capitalization error discovered in 2021 and any 2021 journal entries related to the change in depreciation methods. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar.)

On January 1, 2018, Lawson Brothers Enterprises (LBE) granted restricted stock units (RSUs) representing 40 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within four years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. The common shares had a market price of $10 per share on the grant date. At the date of grant, LBE anticipated that 5% of the recipients would leave the firm prior to vesting. Ignore taxes.

Required:

1. Prepare the appropriate journal entry to record compensation expense on December 31, 2018. Show calculations.

2. Prepare the appropriate journal entry to record compensation expense on December 31, 2019. Show calculations.

3. During 2020 third year, LBE revised its estimate of forfeitures from 5% to 10%. Prepare the appropriate journal entry to record compensation expense on December 31, 2020. Show calculations.

4. Prepare the appropriate journal entry to record compensation expense on December 31, 2021. Show calculations.

Prepare all the necessary journal entries for the transactions listed above for Parker Corporation.

5. On December 1, 2018, Folks Wagon Company adopted a stock-option plan that granted options

to key executives to purchase 50,000 shares of the company’s $10 par value common stock. The

options were granted on January 1, 2019, and were exercisable 3 years after the date of grant if the

grantee was still an employee of the company. The options expired 5 years from the date of grant.

The option price was set at $35, and the fair value option-pricing model determines the total

compensation expense to be $450,000.

All of the options were exercised during the year 2022: 20,000 on February 23 when the market

price was $46, and 30,000 on August 8 when the market price was $85 a share.

a. Prepare the journal entries relating to the stock option plan for the years 2019, 2020, and 2021.

Assume that the employee performs services equally in 2019, 2020, and 2021.

b. Prepare the journal entries that record the two events of exercising the options in 2022

Please type down (easy for me to copy and paste) your response (thoughts, ie agree or diagree and why?) after your reading the following paragraphs. (min 5 sentences, 150-200 words)

Climate change is a great environmental threat that requires attention. It exacerbates extreme weather patterns and changes in temperature, which in turn affect the livelihoods and lifestyles of people around the world. The biggest cause of climate change is the emission of CO2. One solution to climate change is the use of current renewable energy. Renewable energy is an adequate form of energy that does not require fuel. Its advantage is that it is virtually inexhaustible in duration; they are constantly replenished. However, they are limited in flow; solar energy and wind power are not always available. Another solution is nuclear power, which is a less appealing solution compared to renewable energy. Advancing technology nuclear power can increase the risk that the nuclear power will be used for malevolent purposes, such as creating weapons. Nuclear power is also dangerous in that errors in operation can lead to a disaster similar to that of Chernobyl, where a nuclear reactor explosion caused numerous deaths resulting from radiation exposure.

Bill Gates’ proposed solution for the climate change problem is TerraPower. TerraPower “breeds [the 99%, the 238] uranium as it goes along, so it's kind of like a candle” (Gates, 2010). The 238 uranium is thus essentially a “miracle battery,” storing enough fuel for the entire lifetime on the planet (Gates, 2010). I think if we depend on nuclear power for energy, there is always the risk of equipment malfunction and radiation exposure, which is extremely detrimental. Nonetheless, Gates understands the value of discovering innovative ideas through research and technology in order to benefit the public. Essentially, his wish for efficient, low cost energy is an idea worth spreading.

Problem 17-06

Tamarisk Company has the following portfolio of investment securities at September 30, 2020, its most recent reporting date.

On October 10, 2020, the Horton shares were sold at a price of $54 per share. In addition, 3,040 shares of Patriot common stock were acquired at $56 per share on November 2, 2020. The December 31, 2020, fair values were Monty $114,890, Patriot $139,880, and Oakwood $186,000.

Prepare the journal entries to record the sale, purchase, and adjusting entries related to the equity securities in the last quarter of 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)