= 2 Assessment (2) - Compatibility Mode - Word e Search erences Mailings Review View Help wow Pupuar my CVT Question # 1. Critically evaluate the facts that why few companies use nominal dividend approach than real dividend in the dividend distribution process' and its reporting in the balance sheet? (7 Marks) 2 Accessibility: Unavailable Question # 2. In financial year ended 2020, Oman Flour Mills is expected to generate Pre-tax cash flows (earnings before interest and taxes) for OMR 4.5 Million. The current income tax rate in the country is 9.5% while the company shall also pay a fixed interest @ 6.75% on the debt of OMR 4 Million. Required: Using general Income statement pattern, at year closing 2020, what will be the available amount for dividend distribution to the shareholders? (5 Marks) Accessibility: Unavailable For e 1 N Assessment - Compatibility Mode - Word erences Mailings Review View Help Question # 3. Assume that Sohar Power Company (SPC) purchased market securities for OMR 8.50 Million in August 31, 2017. In early December 2017, the fair value of securities increased by 2 Million to reach at OMR 10.50 Million. In early June 2018, fair value again increased by OMR 1 Million and reached to OMR 11.50 M. In the annual closing of June 30th 2018, SPC sold these securities at a fair value of OMR 11.50 M to gain the profit. Required: a) Using US GAAP standards, what will be the accounting treatment of increased fair value of securities in semi-annual (6months) following management financial statements as of December 31, 2017 by SPC? Accessibility: Unavailable O BE NW i. Balance Sheet as of management accounts December 31, 2017 ii. Income Statement as of management accounts December 31, 2017 iii. Comprehensive Income Statement as of management accounts December 31, 2017 (2x2x2 Marks) b) Using US GAAP standards, what will be the accounting treatment of increased fair value and sales of securities in annual audited financials for June 30th, 2018 by SPC? (Write separate accounting treatments in all yearly financial statements) (7 Marks)