1. 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 purchases: 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?

1. A company has the following transaction over its 4-year history:

Year 1 Incorporates, issues stock for $400 million, earns $25 million

Year 2 Earns $35 million, pays $5 million dividend

Year 3 Repurchase $50 million of stock, has net loss of $15 million pays $5 million dividend

year 4 Issues stock for $575 million, earns income of $55 million pays $10 million dividend

Calculate the Share Capital and Retained Earnings balances at the end of each year.