1. Main Corp. issues common stock on 1/1/2018. All Shareholders Equity accounts have a $ 0 as of that day. On 1/1/2018, they issue 20,000 shares of $1 par common stock (they are authorized to issue 55,000 shares). The issue price of the shares was $26/share. On 4/5/2018, Main repurchases 3,000 shares of their common stock at the market price of $29/share. They are not retiring the shares. On 7/19/2018, they sell 1,000 of those shares at the market price of $25/share; on 9/15/2018 they sell an additional 1,000 shares at the new market price of $29/share. During 2018, Main reports net income of $114,500. They declare a cash dividend of $11,500 on 11/30/2018. Mains policy is to pay dividends 60 days after they are declared. What is the balance in Main's retained earnings account as of 12/31/2018?

A. $ 114,500

B. $ 103,000

C. $ 104,000

D. $ 99,000

E. $ 102,000

2. Main corp has issued $100,000,000 of bonds. They mature in 15 years and have a 7% coupon rate. When issued, the market rate for similar bonds was 8.75%. Assume this caused the bonds to be sold for $91,000,000. Main corp amortizes and premiums and discounts on a straight line method. The bond pays interest annually with principle due at maturity. Assuming no late payments or early retirement of the bond, at maturity, after all interest and principle payments, the total cash outflow for this bond will have been:

A. $ 100,000,000

B. $ 196,000,000

C. $ 205,000,000

D. $ 214,000,000

E. $ 95,500,000

3. As of 1/1/2018, Alex Inc. had 125,000 common shares outstanding. On 3/1/2018, they issued another 24,000 common shares. Alex Inc. declared a 10% stock dividend on May 18, 2018. On June 30th, they issued 50,000 shares of $10 par, 8% non-cumulative preferred stock. On Sept 30, 2018 Alex Inc. repurchased 9,000 shares to hold as treasury stock. Assume no cash dividends were declared and Alex Inc. had net income of $748,000, calculate Basic Earnings Per Share:

A. $ 4.83

B. $ 4.44

C. $ 4.51

D. $ 4.10

E. $ 4.76

4. As of 1/1/2018, Kayla Inc. had 125,000 common shares outstanding. On 3/1/2018, they issued another 24,000 common shares. Kayla Inc. declared a 10% stock dividend on May 18, 2018. On June 30th, they issued 50,000 shares of $10 par, 8% non-cumulative preferred stock. On Sept 30, 2018 Kayla Inc. repurchased 9,000 shares to hold as treasury stock. How many common shares does Kayla Inc. have outstanding as of 12/31/2018

A. 154,900

B. 157,250

C. 204,900

D. 182,250

E. 172,900

5. Apple has signed a 5-year lease for new production equipment. The lease calls for annual payments at the start of each year, beginning on the date of the signing as the first payment, of $74,000. The useful life of the machine is 6 years and Apple will retain title at the end of the lease. The lessor structures leases with an implicit interest rate of 10%. There is no residual value at the end of the lease. How much should Apple initially record as right of use asset?

A. $ 308,570

B. $ 370,000

C. $ 298,764

D. $ 444,000

E. $ 354,518