A) Assume ABC Co. purchases TLC Co. for $2.5 billion. TLC has the following assets on its Statement of Financial Position at the time of purchase: Investments $400 million, Fixed Assets $500 and Land $100. What is the value of the Goodwill that ABC will show on its Statement of Financial Position after the acquisition?

B)

1. Often equity is referred to as the _____ of the company.
2. The _______method of inventory valuation is the most common in Canada.
3. Payment made by a company for services to be received in the near future are called ______
4. Fixed assets are shown on the Statement of Financial Position at ______cost, including installation and other acquisition expenses.
5. Except for ________ , fixed assets are depreciated each year and the total accumulated depreciated is deducted from the original cost.
6. ________is the term applied to writing down resource assets, and _______is a term sometimes used to describe the writing off of intangible assets.
7. The _________method applies a fixed percentage, rather than a fixed dollar amount, to the outstanding balance to determine the depreciation expense to be charged in each period.
8. Annual allowances for depreciation and depletion appear as _______ charges against revenue in the Statement of Comprehensive Income, and do not affect actual cash outflows.
9. ________refers to the recording of an expenditure as an asset rather than as an expense.
10. _________assets are assets which cannot be touched, weighed or measured.
11. __________are debts incurred by a company in the ordinary course of its business which have to be paid within a short time - a year at the most.
12. The amount left over after payment of income taxes is called ________,out of which dividends may be paid to the shareholders
13. __________refers to the principles and practices used for recording and reporting business transactions.
14. Retained earnings are calculated as the previous retained earnings balance plus______ less for the current____________. Share capital increases if _________are issued.
15. A company buys a truck for $50,000 with an expected salvage value of $10,000 and an expected life of 4 years. If it uses straight-line depreciation, the annual depreciation expense is _______. The Statement of Financial Position shows a value of the truck after 2 full years is ______.
16. Gross profit is calculated as sales minus _________. EBIT is an accounting acronym meaning _________
17. Current assets are those which are expected to be turned into cash within _______.