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AZZY Ltd. issued preferred shares as part of a transfer of ownership under specified sections...

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Finance

AZZY Ltd. issued preferred shares as part of a transfer of ownership under specified sections of the Income Tax Act. The company issued 401,400 shares, for a nominal dollar amount of $1 per share. The shares are retractable at $15 per share, anytime, at the holders option. Dividends of $21,400 in total were paid on the dividends during the year. AZZY has net earnings before tax of $764,000 before the recognition of the dividend, total liabilities of $2,314,000, and total shareholders equity of $5,814,000 before the recognition of the preferred share issue. Required: 1. Assuming AZZY follows IFRS, what is the revised net earnings before tax, total liabilities, and shareholders equity after these transactions?

2. Assuming AZZY follows ASPE, what is the revised net earnings before tax, total liabilities, and shareholders equity after these transactions?

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