Question 7.3 (Total: 28 marks as indicated; -2 marks per error) On January 1, 2016, Thor Corp. bought 30,000 shares of the available 100,000 common shares of Loki Inc., a publicly-traded firm. This acquisition provided Thor with significant influence. Thor paid $700,000 cash for the investment. At the time of the acquisition, Loki reported assets of $2,500,000 and liabilities of $1,200,000. Asset values reflected fair market value, except for capital assets that had a net book value of $500,000 and a fair market value of $730,000. These assets had a remaining useful life of five years. For 2016 Loki reported a net income of $400,000 and paid total cash dividends of $100,000 On May 16, 2020, Thor sold 15,000 of its shares in Loki for $425,000. Thor has no immediate plans to sell its remaining investment in Iceberg. Loki is actively traded, and stock price information follows: January 1, 2016 = $23 December 31, 2016 = $25 January 1, 2020 = $26 Required 1. Assuming Thor is using ASPE, did the initial investment include a payment for goodwill? Provide support for your Solutions. 2. At the end of 2016, what would appear on the income statement and balance sheet of Thor in connection with its investment in Loki? Show supporting calculations. 3. Provide the entry to account for Thor's sale of the shares in May 2020. How should Thor account for its remaining investment in laki