A parallel plate capacitor with plate separation d is connected to a battery. The capacitor is fully charged to Q Coulombs and a voltage of V. (C is the capacitance and U is the stored energy.) Answer the following questions regarding the capacitor charged by a battery.

For each statement below, select True or False.

1. With the capacitor connected to the battery, increasing d increases U.

2. After being disconnected from the battery, inserting a dielectric with κ will decrease V.

3. With the capacitor connected to the battery, decreasing d decreases Q.

4. After being disconnected from the battery, inserting a dielectric with κ will increase U.

5. After being disconnected from the battery, inserting a dielectric with κ will decrease C.

6. After being disconnected from the battery, decreasing d increases C.

Grant Company acquired 40% of the voting stock of Jake Corporation on January 1, 2016, for $50,000,000. Basis differences were attributed entirely to goodwill. During the 5-year period from January 1, 2016 through December 31, 2020, Jake reported total net income of $23,000,000 and paid $8,000,000 in dividends. During 2021, Jake reported net income of $3,000,000 and paid $800,000 in dividends.
Required:
a. Calculate the balance in Investment in Jake, reported on Grant’s December 31, 2020 balance sheet.

b. Calculate the balance in Investment in Jake, reported on Grant’s December 31, 2021 balance sheet.

1. Assume that you held a Treasury note that makes coupon payments on May 15 and November 15.   The number of days between each coupon payment is 184.  Suppose you sold the bond on June 27, 2016.  If the number of days between May 15 and June 27 is 43, the bond carried a coupon rate of 3.875% and matures as of May 15, 2026 ($1,000 par value),

a) What would have been the settlement (dirty) price on June 27, 2016 if the bond was priced to yield 4.0369%?  

b) What was the accrued interest?  

c) What was the market price (quoted on the Wall Street Journal)?

Net Cash Flow From Operating Activities

The following are accounting items taken from Tyrone Shoelaces Company's records for 2016:

Net income, $22,700

Payment for purchase of land, $4,000

Payment for retirement of bonds, $6,000

Depreciation expense, $7,800

Receipt from issuance of common stock, $7,000

Patent amortization expense, $3,700

Increase in accounts receivable, $4,300

Payment of dividends, $5,000

Decrease in accounts payable, $2,700

Required:

Prepare the net cash flow from operating activities section of Tyrone's 2016 statement of cash flows using the indirect method. Use a minus sign for any negative amounts.

Stellar Company’s net income for 2017 is $45,200. The only potentially dilutive securities outstanding were 800 options issued during 2016, each exercisable for one share at $6. None has been exercised, and 10,100 shares of common were outstanding during 2017. The average market price of Stellar’s stock during 2017 was $25.

(a) Compute diluted earnings per share.

(b) Assume the same facts as those assumed for part (a), except that the 800 options were issued on October 1, 2017 (rather than in 2016). The average market price during the last 3 months of 2017 was $25.

On July 1, 2016, Gissel Corporation purchased Mills Company by paying $525,000 cash. At July 1, 2016, the balance sheet of Mills Company was as follows.

Cash $50,000 Accounts Payable $200,000

Accounts Receivable $90,000 Stockholder’s Equity $225,000

Inventory $100,000

Land $40,000

Buildiings 75,000

Equipment $70,000

Total $425,000 Total $425,000

The recorded amounts all approximate current values except for land (fair value of $60,000) and inventory (fair value of $110,000). They also acquired a patent from Mills company with a fair value of $15,000. What amount of goodwill should be recognized by Gissel Corporation?

Several years ago Brant, Inc., sold $960,000 in bonds to the public. Annual cash interest of 9 percent ($86,400) was to be paid on this debt. The bonds were issued at a discount to yield 12 percent. At the beginning of 2016, Zack Corporation (a wholly owned subsidiary of Brant) purchased $160,000 of these bonds on the open market for $181,000, a price based on an effective interest rate of 7 percent. The bond liability had a carrying amount on that date of $930,000. Assume Brant uses the equity method to account internally for its investment in Zack.

1. a. & b. What consolidation entry would be required for these bonds on December 31, 2016 and December 31, 2018?

Belgium Co. is constructing a tunnel for 800 million. Construction began in 2011 and is estimated to be completed in 2016. At December 31, 2013, Belgium has incurred costs totaling 356 million with 85 million of that incurred in 2013, 143 in 2012, and 128 in 2011. Belgium received 356 million in total progress payments to date but future activity is tenuous and its cost numbers are highly uncertain. What amount of revenue should Belgium Co. recognize for the year ended December 31, 2013?

A. No revenue should be recognized until the contract is completed in 2016.
B. 356 million.
C. 271 million.
D. 85 million.

2-Stanford owns and operates two dry cleaning businesses. He travels to Boston to discuss acquiring a restaurant. Later in the month, he travels to New York to discuss acquiring a bakery. Stanford does not acquire the restaurant but does purchase the bakery on November 1, 2016.

Stanford incurred the following expenses:

If required, round any division to two decimal places and use in subsequent computation. Round your final answer to the nearest dollar.

What is the maximum amount Stanford can deduct in 2016 for investigation expenses?