Big Co. acquires Little Co in a transaction to be accounted for as a merger. Little Co. has the following trial balance information at the date of acquisition:

	Book value	Fair value
Cash	10,000	10,000
Inventory	18,000	20,000
PPE	400,000	300,000
Accumulated depreciation	(120,000)
Goodwill	50,000
Accounts payable	30,000	30,000
Common stock	100,000
Retained earnings	228,000

Big Co gives the previous owners of Little 20,000 shares of their $1 par value common stock, valued at $17/share, for the acquisition. In addition to the immediate cash payment, Big also agrees to granting additional shares if certain sales growth targets are met after 3 years. The sales growth targets, the number of additional shares, and the estimated likelihood of hitting those targets is as follows:

Sales growth	Shares	Estimated likelihood
0-3%	0	30%
3.01 - 6%	2,000	30%
6.01% - 9%	4,000	25%
9.01%+	6,000	15%

At the end of 3 years, actual sales growth came in at 5%. At that time (when the additional shares are issued) the share price is $22/share.

IncorrectQuestion 1

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At the time of the acquisition, what is the expected value (# of shares) of the additional shares to be issued? (answer "xx,xxx shares")

IncorrectQuestion 2

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What dollar value is assigned to these shares? (xx,xxx)

IncorrectQuestion 3

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How much goodwill is recorded as part of this transaction? (xx,xxx)

IncorrectQuestion 4

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When the additional shares are distributed after 3 years, what is the total value assigned to them? (the total credit to Common Stock and Paid in Capital in Excess of Par)? (xx,xxx)