McChip Resources Announces Dividend.TORONTO -- McChip Resources Inc. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:MCS (1) See Microsoft Cluster Server. (2) (Microsoft Consulting Services) The consulting arm of Microsoft which offers support for installation and maintenance of Microsoft applications and operating systems. ) is pleased to announce the payment of an annual dividend.The second annual payment of $0.07 per share will be payable on December 17, 2004 to shareholders of record on December 10, 2004. The ex dividend date will be December 8, 2004. The payment will be a capital dividend under Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. income tax rules. The tax free capital pool balance prior to the payment of this dividend is in excess of $2,500,000 and future dividend payments will be capital in nature until the tax pool is paid out. Dividend payments thereafter will be taxed at the standard rates applicable. Shareholders should consult their own tax advisors A tax advisor is a financial expert especially trained in tax law. Some countries require tax advisors to verify the balance sheets of companies above a certain size. Individuals usually require tax advisors to minimize taxation, to avoid learning the details of tax law in for advice with respect to the tax consequences of a capital dividend. Dividends are currently intended to continue to bepaid on an annual basis, the amount of which will be determined after a review of cash available from oil and gas operations and investment income. The net income recorded by the Corporation for the third quarter ended September 30, 2004 was $32,867 compared to $476,164 in 2003. The Corporation recorded a nine month profit in 2004 of $126,827 compared to $893,265 for the same period in 2003. The factors contributing to the nine month 2004 reduction in net income of $766,438 were a decrease in profit from oil and gas operations of $112,248, an increase in investment income of $8,867 , and an increase in administrative expenses of $33,657, interest expense of $46,107, exploration expenditures $6,579, income taxes of $108,000, depletion depletion n. when a natural resource (particularly oil) is being used up. The annual amount of depletion may, ironically, provide a tax deduction for the company exploiting the resource because if the resource they are exploiting runs out, they will no longer be able and amortization of $39,700 and an expense for stock based compensation of $163,200 and, no recovery of writedown writedown A reduction in the value of an asset carried on a firm's financial statements. For example, the firm's accountants, believing the inventory is overvalued, may decide to take a writedown by reducing inventory valuation. of investment in other company of $265,814. Stock based compensation calculations have no effect on the Corporation's cash position. McCHIP RESOURCES INC. Suite 500 - 56 Temperance Street Toronto, Ontario M5H 3V5 THE TSX VENTURE EXCHANGE TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE. McChip Resources Inc. (TSX VENTURE:MCS) |
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