Reference no: EM132942504
Successful year for Karathen. The company reported net income of $7,800,000 including a gain (after tax) of $1,300,000 on its discontinued Atlantis division. The market was very pleased with Karathen's performance, as reflected by the steady increase in the stock price through the year, averaging $68/share.
On March 31, 2020, Karathen carried out a $16.5 million buyback of common shares at $58/share. On November 1, the company executed a 2 for 1 share split. Karathen paid dividends of $896,000 to its preferred shareholders and $2,100,000 to its common shareholders in December 2020. Karathen Inc. (Karathen) reports under IFRS. Excerpts from Karathen's Jan 1, 2020 balance sheet are as follows:
Preferred shares ($3.50 cumulative, non-voting, 500,000 authorized, 128,000 issued & outstanding) $ 9,200,000
Common shares (unlimited authorized, 4,200,000 issued & outstanding) 146,700,000
Contributed surplus 1,900,000
Retained earnings 23,800,000
AOCI (1,900,000)
Total shareholders' equity $ 179,700,000
Problem 1: Assume instead that Karathen reports under ASPE. What impact would this have on Karathen's EPS reporting? Explain.
Draw the payoff table for these two companies
: Two companies namely A and B has a market share., in which they currently make $5,000,000 each. Both need to determine whether they should advertise.
|
How much total interest will they pay over the life
: An interest rate of 7.5 percent for 30 years and a monthly payment of $1,398, how much total interest will they pay over the life of the loan (30 years).
|
Calculate karathen diluted eps
: Calculate Karathen's Diluted EPS. Karathen executives hold 320,000 stock options at a strike price of $44/share. These options were outstanding
|
What are the effects on accounting elements
: QUESTION - What are the effects on Accounting elements for the following - Transactions. Explain why it increase or why it decreases
|
What impact would have on karathen eps reporting
: Successful year for Karathen. Assume instead that Karathen reports under ASPE. What impact would this have on Karathen's EPS reporting? Explain.
|
What is the? project npv for dowling sport
: If the discount rate is 5 ?percent, then the? project's NPV is ?$? Dowling Sport is considering building a new factory to produce aluminum baseball bats.
|
Analyse issues in contemporary australian health care policy
: Analyse issues in contemporary Australian health care policy and Develop processes for the evaluation of and accountability for policy
|
Prepare the necessary journal entries to adjust the company
: On April 30, a company's bank statement, Prepare the necessary journal entries to adjust the company's records based on the bank reconciliation.
|
Prepare journal entries to record the purchase of machine
: A company purchased a machine, Prepare the journal entries to record the purchase of the machine and year-end adjusting entries for year 1 and Year 2.
|