The shareholder’s equity section of Lilac Corporation, a company that follows IFRS, as at December 31, 2020 contained the following data: Preferred shares, $4 non-cumulative, participating, 50,000 shares authorized, 10,000 shares outstanding $ 400,000 Common shares, 1 million shares authorized, 50,000 outstanding 1,225,000 $1,625,000 Net income of $230,000 for 2020 reflects includes a loss from discontinued operations of $5,000. No additional shares were issued or retired during the year. 

Required:

1 The company declared and paid dividends totaling $195,000 to the shareholders. There were no dividends in arrears. What amount of this $195,000 went to the preferred shareholders? Preferred share dividends: $__________________________________

2 Assume that instead of your answer calculated in part (a) above, the preferred share dividends for 2020 are a total of $25,000. Calculate the earning per share data for Income from Continuing Operations, Discontinued Operations and Net Income as they should appear in the financial statements of Lilac. 

 3 At December 31, 2019, Aster Inc. had 600,000 common shares outstanding (no preferred shares issued). On October 1, 2020, an additional 120,000 common shares were issued. Aster also had unexercised call options to purchase 60,000 common shares at $14 per share outstanding throughout 2020. The average market price of Aster's common shares was $20 during 2020. Calculate the number of shares that should be used in calculating diluted earnings per share for 2020. With a strike price of

$ No. of Shares: __________________________________

Answer rating: 100% (QA)

1 The company declared and paid dividends totaling 195 000 to the shareholders There were no dividends in ar re ars What amount of this 195 000 went t... View the full answer