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please analyze the accounting issues you have identified. Provide alternative accounting treatment and a conclusion!...

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Accounting

imageplease analyze the accounting issues you have identified. Provide alternative accounting treatment and a conclusion!

6. During November 2017, the company issued 6 million special common shares for $0.10 each. The common shares were issued to an investment bank in Toronto, and have the following characteris- tics: (a) The shares have a retraction privilege that is in effect if MGC's retained deficit balance exceeds $1 million. When the retained earnings are in a surplus position, the shares can be redeemed by the company for $0.35 per share, regardless of the market price. (b) The special common shares carry a 10%, non-cumulative dividend. In any given year, dividends must be paid on the special shares before any other dividend could be paid to the remaining common shares

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