11) On January 1, 2026, Culver Corporation had 110,000 shares of its $5 par value common stock outstanding. On June 1, the corporation acquired 10,000 shares of stock to be held in the treasury. On December 1, when the market price of the stock was $15, the corporation declared a 15% stock dividend to be issued to stockholders of record on December 16, 2026. What was the impact of the 15% stock dividend on the balance of the retained earnings account? 11). A) $247,500 decrease B) $225,000 decrease C) $82,500 decrease D) No effect 29) Investments in debt securities should be recorded on the date of acquisition at 29) A) face value plus brokerage fees and other costs incidental to the purchase. B) fair value. C) fair value plus brokerage fees and other costs incidental to the purchase. D) lower of cost or market. 30) Kahle Corporation purchased a 5% interest in the stock of Granger Company as part of its available-for-sale securities portfolio. Concerning this investment, Kahle will report 30) A) a current asset on its balance sheet, and dividend revenue and unrealized holding gains and losses on its income statement. B) a long-term asset on its balance sheet, and investment revenue and unrealized holding gains and losses on its income statement. C) a long-term asset on its balance sheet, dividend revenue on its income statement, and an unrealized holding gains and losses in comprehensive income. D) a current asset on its balance sheet, and investment revenue on its income statement. 36) On January 2, 2025, Karr Company issued a 5-year, $6,000,000 note at LIBOR with interest paid annually. The variable rate is reset at the end of each year. The rate for the first year is 6.8%. Karr decides it prefers fixed- rate financing and wants to lock in a rate of 7%. As a result, Karr enters into an interest rate swap to pay 7% fixed and receive LIBOR based on $6 million. The variable rate is reset to 7.4% on January 2, 2026. What net interest expense will be reported for this note and the related swap transactions on Karr's 2026 income statement? 36) A) $444,000 B) $408,000 C) $420,000 D) $404,000 40) New Age Computers manufactures and sells pagers and radio paging systems which include a 180-day warranty on product defects. It also sells an extended warranty which provides an additional two years of protection. On May 10, it sold a paging system for $4,500 and an extended warranty for another $1,400. The journal entry to record this transaction would include 40) A) a credit to Sales Revenue of $4,500 and a credit to Unearned Warranty Revenue of $1,400. B) a credit to Warranty Revenue of $1,400. C) a credit to Unearned Warranty Revenue of $5,900. D) a credit to Warranty Revenue of $5,900. 49) Franchise fees should be recognized 49) A) when performance obligations are satisfied. B) on the date the franchise fee is paid to the franchisor. C) on the date the contract was signed. D) on the date the franchise is opened for business. 50) Kiner, Inc. began work in 2024 on a contract for $21,000,000. Other data are as follows: Costs incurred to date Estimated costs to complete Billings to date Collections to date 2024 $9,000,000 2025 $14,000,000 6,000,000 7,000,000 21,000,000 5,000,000 18,000,000 50) If Kiner uses the cost-recovery method, the gross profit to be recognized in 2025 is A) $14,000,000. B) $7,000,000. C) $3,500,000. D) $3,400,000