Company A, a paper and allied products manufacturer, was seeking to gain a foothold in Canada. The company bought 40% of the outstanding common shares of Company B on January 2, 2013 for $400 million. At the date of purchase, the book value of Company B's net assets was $775 million. The book value and fair values for all balance sheet items were the same except for inventory and plant facilities. The fair value exceeded book value by $5 million for the inventory and by $20 million for the plant facilities.

The estimated useful life of the plant facilities is 16 years. All inventory acquired was sold during 2013. Vancouver reported net income of $140 million for the year ended December 31, 2013, and paid a cash dividend of $30 million.

Required

a. What amount should Company A report as its income from investment in Company B for the year ended December 31, 2013?

b. What amount should Company A report in its balance sheet as its investment balance in Company B at December 31, 2013?

c. What amount should Company A report in its statement of cash flows under cash flows from investing activities?

d. What amount should Company A report in its statement of cash flows under cash flows from operating activities?

e. What is the impact of adjustments for inventory and plant facilities on equity income/investment income for the year?

f. What is the fairvalue and goodwill? (Show calculations)