1.

D Total SASP Fraction Allocation

Points 2,400,000 2,400 / 16,000 2,040,000
Product 13,600,000 13,600 / 16,000 11,560,000
16,000,000 13,600,000

Revenue in 2022 (2,040,000 x 57,600 / 120,000) 979,200

Cumulative (2,040,000 x 75,600 / 108,000) 1,428,000

Revenue in 2022 (979,200)
Revenue in 2023 448,800

2. C Warranty expense 750,000

Payment (400,000)
Warranty liability 350,000

3. C Date Interest expense Interest Paid Amortization Carrying amount

January 1, 2022 9,386,000
December 31, 2022 938,600 900,000 38,600 9,424,600
December 31, 2023 942,460 900,000 42,460 9,467,060

4. A Proceeds from issue of shares 1,500,000

Share warrants outstanding 1,600,000
Par value of shares (1,000,000)
Share premium 2,100,000

5. A Rental income 9,600,000

Amortization of initial direct cost (400,000)
Depreciation (1,000,000)
Property tax (200,000)
Net rental income 8,000,000

6. D PV of fixed lease payments 2,485,000

PV of purchase option 160,000
PV of lease payments 2,645,000
Initial direct cost 300,000
Lease bonus 450,000
Cost of RUA 3,395,000

7. B Date Payment Interest Principal Lease liability

December 31, 2022 6,330,000
December 31, 2022 1,000,000 1,000,000 5,330,000
December 31, 2023 1,000,000 533,000 467,000 4,863,000
December 31, 2024 1,000,000 486,300 513,700 4,349,300

8. B Sales (1,200,000 x 3.60) 4,320,000

9. C Initial lease liability 2,079,000

Additional financing (500,000)
Rights retained 1,579,000

Cost of RUA (4,000,000 x 1,579,000 / 6,000,000) 1,052,667

10. C Gain on extinguishment (6,600,000 - 3,500,000) 3,100,000

11. C Current tax expense (7,500,000 x 25%) 1,875,000
Income tax benefit (1,500,000 x 25%) - 375,000
Total tax expense 1,500,000

12. A Deferred tax liability (1,300,000 x 25%) 325,000

13. A PBO - January 1 8,000,000

Current service cost 3,000,000
Past service cost 1,500,000
Interest cost 800,000
Benefits paid (4,500,000)
PBO - December 31 8,800,000

14. D Share capital 5,000,000

Share premium 1,000,000
Retained earnings 2,000,000
Treasury shares (500,000)
Cumulative translation loss (400,000)
Cumulative unrealized gain 600,000
Total SHE 7,700,000

15. D Share capital (10,000 x 50) 500,000

Share premium (10,000 x 25) 250,000
Retained earnings 450,000
Treasury shares 1,200,000

Share premium (2,500,000 - 250,000) 2,250,000

16. A Retained earnings, beg. 8,000,000

Declaration of share dividend (100,000 x 10% x 70) (700,000)
Net loss (1,200,000)
Retained earnings, end 6,100,000

17. C Retained earnings, beg. 2,000,000

Appropriation for treasury shares (50,000 x 10) (500,000)
Property dividend (600,000)
Net income 2,500,000
Unappropriated RE, end 3,400,000

18. D Compensation expense (800,000 / 2) 400,000

19. B Compensation expense (16,000 x 15) 240,000

20. A Premium expense (200,000 x 75% / 2 = 75,000 x 80) 6,000,000

21. C Total SASP Fraction Allocated

Product (100,000 x 120) 12,000,000 120/137 10,510,949
Discount coupons (100,000 x 17) 1,700,000 17/137 1,489,051
13,700,000 12,000,000

Stand-alone price per coupon (20 x 85%) 17

22. C CA of bonds (2,000,000 + 80,000) 2,080,000
Equity component 350,000
Total 2,430,000
Par value (2,000 x 50 x 15) (1,500,000)
Share premium 930,000

23. B Dividend payable 4,300,000

Equipment held for distribution 4,700,000
Loss on settlement (400,000)

24. B Compensation expense (100,000 x 9 / 3) 300,000

25. B Year Cumulative Expense

2022 (25,000 x 80 / 4) 500,000 500,000
2023 (15,000 x 80 x 2/4) 600,000 100,000
2024 (25,000 x 80 x 3/4) 1,500,000 900,000
2025 (35,000 x 80 x 4/4) 2,800,000 1,300,000