On December 31, 20X5, CI Co. purchased 100% of the outstanding common shares of SA Ltd. for $1,500,000 in cash; 76% of the cash was obtained by issuing a five-year note payable. The statements of financial position of CI and SA immediately before the acquisition and issuance of the notes payable were as follows (in 000s):

	CI		SA
	Book Value $	Fair Value $	Book Value $	Fair Value $
Cash	360	360	200	200
Accounts Receivable	520	500	380	380
Inventory	800	880	400	450
Prop. Plant & Equipment	1,820	2,000	1,420	1,520
Total	3,500		2,400
Current Liabilities	380	380	260	260
Long term liabilities	1,200	1,200	1,000	1,030
Common shares	500		600
Retained Earnings	1,420		540
Total	3,500		2,400

1)

What is the goodwill or negative goodwill at December 31, 20x5?

Question 7 options:

	A) $360 goodwill
	B) $240 goodwill
	C) $240 negative goodwill
	D) $2,340 negative goodwill

2)

12) On the consolidated statement of financial position at December 31, 20x5, the amount of cash is

Question 8 options:

	A) $26
	B) $560
	C) $360
	D) $200