d$)$ $$500,840.$

$4.$ Sahoto Corporation follows ASPE. Sahoto's chemical products division consists of five plants and is uninsurable because of the special risk of injury to employees and losses due to fire and explosion. Consequently, Sahoto must self$-$insure for these risks. The year $2023$ is considered one of the safest in the division's history because there were no losses due to injury or casualty. Having suffered an average of three casualties a year during the rest of the past decade $($ranging from $$60,000$ to $$700,000),$ management is certain that next year Sahoto will not be so fortunate. The amount of contingent Liabilities that Sahoto should record as at Dec $31,2023$ is

a$)$ $$0.$

b$)$ $$60,000.$

c$)$ $$65,000.$

d$)$ $$70,000.$

$5.$ On January $1,2018,$ Culver Industries Inc. issued a $$1,012,000,10-$year bond. The bond sold at $98,$ and paid $16\%$ interest each January $1$ and July $1.$ Culver called at $104$ and cancelled the bond on January $1,2023.$ Assume the company used the straight$-$line method of amortization. Calculate the gain or loss on redemption.

a$)$ $$40,600$ gain

b$)$ $$40,600$ loss

c$)$ $$50,600$ gain

d$)$ $$50,600$ loss

$6.6.$ On December $31,2023,$ Cullumber Bank enters into a debt restructuring agreement with Marin Inc., which is now experiencing financial trouble. The bank agrees to restructure a $$3\mathrm{.}3$million, $10\%$ note receivable issued at par by the following modifications:

Reducing the principal obligation from $$3\mathrm{.}3$ million to $$3\mathrm{.}14$ million

Extending the maturity date from December $31,2023,$ to December $31,2026$

Reducing the interest rate from $10\%$ to $8\%$

Marin pays interest at the end of each year. On January $1,2027,$ Marin Inc. pays $$3\mathrm{.}14$ million in cash to Cullumber Bank. Cullumber Bank prepares financial statements in accordance with IFRS $9.$ There is no evidence of a significant increase in credit risk and $12-$month expected credited losses are calculated at zero. For simplicity, assume that Cullumber Bank had not recognized any impairment prior to this $($although it likely would have done so under the expected loss model$).$ Calculate the loss that Cullumber Bank will accrue based on the debt restructuring.

a$)$ $$256,390$

b$)$ $$286,290$

c$)$ $$316,190$

d$)$ $$346,090$

$7.$ The outstanding share capital of Novak Corporation consists of $3,355$ preferred shares and $6,100$ common shares for which $$274,500$ was received. The preferred shares carry a dividend of $$6$ per share and have a $$100$ stated value. Assuming that the company has retained earnings of $$110,730$ that is to be entirely paid out in dividends and that preferred dividends were not paid during the $3$ years preceding the current year, how much should preferred shareholders receive if the preferred

$2$