A firm is expected to earn $50 and $82 net income for the next two years, respectively. At the end of the two year period the firm will be liquidated. The $82 expected earnings in year 2 includes gains and losses from disposals of assets and liabilities, and all other winding up costs. The firms book value at the beginning of year 1 is $700 and its cost of capital is 8%. Calculate the firms market value at the beginning of the year using the residual income model.