Cinefilm (CF) is an entertainment and media company established in 1982 by two brothers in Toronto. CF has grown into a large, nationally recognized company that is publicly traded on the TSX with the symbol CF. CF has three operating segments: movie theatres, streaming content, and advertising. The CFO and accounting department are currently analyzing the following issues in preparing the year-end financial statements. a) During the year, CF launched a new loyalty program called the Movie Points Program (MPP). Individuals can sign up for a loyalty card and earn one movie point (1 MP) for every movie ticket purchased. Seven MPs are required for a free movie. The program has been very successful, and 345,548 MPs were issued during 2023 , with 25,152 free movies being awarded. Management expects that 14% of the points will never be redeemed (that is, 1 of 7 points). No journal entries have been recorded in the financial statements related to the MPP. On average, a movie ticket hasia retail value of $10, and a total cost of $3. b) On January 1, 2021, the company issued a $1-million, five-year bond with a coupon rate of 5% when the market rate was 6%. The bond pays interest annually and has no conversion features. The bond was issued for $957,876. On December 31,2023, the company reacquired the bond for $950,000. The bond discount is amortized with the effective interest method. c) On December 1, 2023, the company reacquired 210,000 common shares at a price of $60 per share. Prior to the acquisition, the shareholders' equity section of the SFP was as follows: Preferred shares (250,000 authorized, 250,000 issued) cumulative dividend of $1 per share Common shares (unlimited authorized, 9,500,000 issued) $2,500,000228,000,000 Contributed surplus, common share retirement 545,000 Retained earnings 125,575,000 d) On December 31, 2023, the board of directors declared a total dividend of $714,500 to be paid out to the preferred and common shareholders