2020 Annual Report

Annual Report 2020 109 TOURISM CHILLIWACK INC. Notes to Consolidated Financial Statements (continued) Year ended December 31, 2020 5. Share capital: 2020 2019 Authorized: Unlimited common shares Issued with no par value: 100 Common shares $ 1 $ 1 6. Related party transactions and economic dependence: During the year, the City of Chilliwack (the "City") provided funds under operating agreements totaling $612,300 (2019 - $512,100) to the Company. The City has agreed to provide future annual operating funds based on a pre-determined formula. In addition, the Company had other sales transactions with the City in the aggregate amount of $64,956 (2019 - $90,975) and purchased services from the City totaling $15,553 (2019 - $17,853). The Company is a wholly-owned subsidiary of the City. See also note 11. All transactions with the City are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed to by the parties. During the year the Company had sales of $47,119 (2019 - $50,867) and made purchases of goods and services of $25,314 (2019 - $27,742) with entities that have an individual on the Company's board of directors. These transactions were on the same terms and conditions as transactions with other parties. 9 TOURISM CHILLIWACK INC. NOTES TO ONSOLIDATED FINANCIAL STATEMENTS Year Ended Dece ber 31, 2020