The following information was available for The Gibson Group Inc. (TGGI) for 2016:
1. Class A common shares, 10 votes per share, unlimited authorized, 7,530,000 issued and outstanding on January 1, 2016, for $18,825,000. Class B common shares, 1 vote per share, unlimited authorized, 25,432,000 issued and outstanding for $216,172,000.
2. January 1, 2016, balance of $252,475,000 in retained earnings and $674,000 in accumulated other comprehensive income.
3. In December, TGGI paid dividends of $1.50 on all shares outstanding.
4. Net income for 2016 was $85,993,000 and other comprehensive income reported was $43,000.
Required:
a. What was the average amount per share originally invested by each class of shareholder?
b. How many total votes are there available on TGGI’s common shares?
c. What portion of the voting rights does each class of shareholder control?
d. Explain why the company might have the two classes of shares that it does.
e. Prepare TGGI’s statement of changes in shareholders’ equity for 2016.
f. What portion of net income did TGGI pay out in dividends?