Hoopla Ltd. is a Canada Business Corporation and has 19,220 Class A voting (common) shares and 6,460 Class B non voting(preferred shares). Class A shares are non cumulative and Class B shares are cumulative. The Class B shares have a fixed return of$2/share and the dividends to Class A are unlimited. In Year 1 Hoopla paid no dividends. In Year 2, it paid 80 cents a share to Class Aand the stated rated to Class B.Required 1: What is the amount of dividends paid out to Class A shareholders in year 2? $Required 2:What is the amount of dividends paid out to Class B shareholders in year 2? $Required 3: What is the total amount of dividends paid out to shareholders in year 2? $Required 4: What is the amount of dividends paid out to Class A shareholders in year 1? $Required 5: What is the amount of dividends paid out to Class B shareholders in year 1? $

The objective of the question is to calculate the amount of dividends paid out to Class A and Class…

Answered: Hoopla Ltd. is a Canada Business…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Hoopla Ltd. is a Canada Business Corporation and has 16,220 Class A voting (common) shares and 5,710 Class B non voting (preferred shares). Class A shares are non cumulative and Class B shares are cumulative. The Class B shares have a fixed return of $2/share and the dividends to Class A are unlimited. In Year 1 Hoopla paid no dividends. In Year 2, it paid 80 cents a share to Class A and the stated rated to Class B. Required 1: What is the amount of dividends paid out to Class A shareholders in year 2? Required 2:What is the amount of dividends paid out to Class B shareholders in year 2? Required 3: What is the total amount of dividends paid out to shareholders in year 2? Required 4: What is the amount of dividends paid out to Class A shareholders in year 1? Required 5: What is the amount of dividends paid out to Class B shareholders in year 1?
Valiant Corp is a C corporation that earned $5.2 per share before it paid any taxes. Valiant Corp. retained $1 of after-tax earnings for reinvestment and distributed what remained in dividend payments. Assume that the corporate tax rate was 32% and dividend earnings were taxed at 12.2%. The value of the dividend earnings received after- tax by a holder of 99,960 shares of Valiant Corp. is $_______.(round your answer to two decimal places) Answer: 222 571.74
During the year just ended, Spriha’s distribution had pretax earnings from operations of$2,290,000. In addition, during the year it received $50,000 in income from interest on bonds &received $88,000 in income from dividend on common stock holding in Microsoft. Spriha’sdistribution company is in the 40% tax bracket & is eligible for 80% dividend exclusion.*Interest income received by the company is treated as ordinary income.a. Find the tax and after-tax amount attributable to the interest income.b. Find the tax and after-tax amount attributable to the dividend income.
Nativity is a relatively small, privately owned firm. Last year the company had after-tax income of $15,000 and 10,000 shares were outstanding. The owners were tying to determine the value of the stock before prior to taking the company public. A similar firm that is publicly traded, had a P/E ratio of 5. Estimate the market value of one share the Nativity’s stock.
LAVENDER Corporation issued 20,000 shares of its ₱70 par value ordinary share capital and 8,000 of its ₱80 par value preference share capital for a total amount of ₱1,800,000. At this date, the company's ordinary shares are selling at ₱80 per share and the preference shares are at ₱100 per share. What amount of the proceeds should be allocated to the preference shares? Choose an answer, either a or b. Show solution in good accounting form. a.) ₱ 800,000 b. ) 0
CorpInc is a CCPC that benefits from the small business deduction (SBD) and pays non-eligible dividends only. In its first two years it issued shares to shareholder as follows: Year 1: 1,500 common shares to ShX for $3,000 • 2,000 common shares to ShY for $6,000 Year 2: . 5,000 preferred shares to ShX for $5,000 • 5,000 preferred shares to Shy for $5,000 In Year 3, a new shareholder, ShZ, purchased all of ShX's common shares for $8,000 and all of ShX's preferred shares for $4,000. In Year 4, Corplnc redeemed all preferred shares at $4 per share. What is the effect of the Year 4 redemption on ShZ's net income?
The following information pertains to Shane’s Sports Collections Limited (SSCL): The tax rate is 40%. SSCL ended 20X5 with 700,000 common shares outstanding, after issuing 200,000 common shares for cash on 31 December. There were no other common share transactions during the period. Net earnings were $1,300,000. The following are elements of SSCL's capital structure: ASCL had $5,000,000 (par value) of 8% bonds payable outstanding during the year. The bonds are convertible into 80 common shares for each $1,000 bond. Bond interest expense was $403,000 for the year. SSCL had 40,000 options outstanding throughout 20X5 to purchase 120,000 common shares for $3 per share. The average share price during the year was $15. The options were not exercisable until 20X10. SSCL had 70,000, $1.25 preferred shares outstanding. The shares were cumulative. No dividends were declared in 20X6. The shares were convertible into 50,000 common shares. SSCL had a contingent share agreement outstanding…
Cblue Company owned 900,000 shares of Flight Company. On December 31, 2004, when the investment had a carrying amount of P5 per share, the entity declared these shares to the shareholders as a dividend to be distributed in 2005. Cblue originally paid P8 for each share. Flight has 3,000,000 shares issued and outstanding which are traded on a national stock exchange. The quoted market price for a Flight share was P7 on the declaration date and P9 on the distribution date in 2005. What amount should be recognized as gain from distribution of property dividend in 2005?
On May 1, Republic Corporation purchased 400 shares of stock for P114 per share and held it as FVTPL financial assets. The price decreased to P106 per share on August 1 and then increased to P122 on December 31. During the year, the company received dividends of P3.50 per share. At what amount should the investment be valued in the December 31 balance sheet?
LLA, Inc, was capitalized through the issuance of 10,000 shares of $30 par common stock that was sold at $50 per share. LLA had net income as follows: Year 1 $100,000 Year 2 200,000 If, during Year 2, LLA paid dividends to its shareholders at $25 per share, what armount was LLA's retained earnings balance and shareholders' equity balance at the end of Year 27 Retained earnings Shareholders' equity $50,000 $550,000 B. $50,000 $800,000 $300,000 $550,000 $300,000 $800,000 D.
Dole Corp. uses the equity method in accounting for its 30% interest in Del Monte, Inc. The profit reported by Del Monte, Inc. for the period is P5,000,000. Del Monte, Inc has outstanding 5% cumulative preference shares with an aggregate par value of P8,000,00. No dividends were declared by Del Monte, Inc. on the preference shares in the last three years, including the current year. How much is Dole Corp’s share in the profit of Del Monte, Inc.?
For the year ending 30 June 2020, Don Ltd reports a net profit after tax of $6.1 million. At the beginning of the financial year Evita Ltd had 2,500,000 fully paid ordinary shares outstanding. Don Ltd also had 1,000,000 partly paid shares. These shares were partly paid to 0.50 cents and had an original issue price of $1. The partly paid shares carry the rights to dividends in proportion to the amount paid relative to the total issue price. They were still partly paid at year end. Don Ltd also has the following securities outstanding: • $2.0 million of 10 per cent notes issued on 1 July 2019. The notes have a life of five years and give holders the right to convert the notes into 500,000 fully paid ordinary shares. • In 2016, employees were provided with options, at no initial cost, which gave them the right to acquire 750,000 shares at an exercise price of $2.50. The options expire five years after their original issue date. Given the time period to option expiry, the directors believe…

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