1A.

An investment in marketable securities was distributed to shareholders as a property dividend. The dividend should be recorded at the

		fair value of the asset transferred or the book value of the asset transferred, whichever is higher.
		fair value of the asset transferred or the book value of the asset transferred, whichever is lower.
		fair value of the asset transferred.
		book value of the asset transferred.

1B. When shares are reacquired at a cost less than the average per share value, the difference is credited to

		the appropriate share capital account.
		Gain on Reacquisition of Shares.
		Retained Earnings.
		Contributed Surplus.

1C. Sarajevo Ltd. currently has outstanding 20,000 no par value common shares with a carrying value of $ 200,000, and 10,000 no par value, $ 0.60, cumulative, fully participating preferred shares with a carrying value of $ 100,000. Dividends on the preferred shares are one year in arrears. Assuming that Sarajevo wishes to distribute $ 54,000 in dividends, the common shareholders will receive

		$ 12,000.
		$ 22,000.
		$ 32,000.
		$ 42,000.

1D. As a minimum, how large in relation to total outstanding shares may a stock distribution be before it should be accounted for as a large stock dividend instead of as a small stock dividend?

		no less than 2% to 5%
		no less than 10% to 15%
		no less than 20% to 25%
		no less than 45% to 50%

1E. For calendar 2020, Budapest Corp. reported net income of $ 29,280 and earnings per share of $ 2.46. There were 12,000 common shares outstanding during 2020. On Dec 31, 2020, the market price for Budapest's common shares was $ 32. To the nearest whole number, what is Budapest's price earnings ratio at Dec 31, 2020?

		13
		32
		375
		915

1F.

Lagos Inc. issued bonds with detachable warrants for $ 5,000,000 (par value). The bonds have a present value of $ 4,934,400. The fair value of the warrants is determined to be $ 220,000. Using the relative fair value method, how much of the issue price should be allocated to the warrants?

		$ 65,600
		$ 211,200
		$ 213,500
		$ 220,000

1F.