Scenario A

2001 2002 2003

NI 100,000.00 550,000.00 700,000.00 Loss on deemed sold
Share 40% 33% 33% IIA
40,000.00 183,333.33 233,333.33
Amortization of excess
Current Assets (100,000.00) 300,000.00
PPE 20,000.00 16,666.67 16,666.67 500,000.00
Intercompany
2001 Equipment UGP (30,000.00) 75,000.00 Share lost
2001 Equipment RGP 3,000.00 5,000.00 5,000.00 Share on i
2002 Inventory UGP (38,888.89) 500,000.00 Loss on dilution
2002 Inventory RGP 38,888.89
SIANI 33,000.00 166,111.11 193,888.89
Gain/Loss on deemed disposal (15,500.00)
IIA, beg 2,000,000.00 2,033,000.00 2,125,277.78
Div - (58,333.33) (166,666.67)
IIA, end 2,033,000.00 2,125,277.78 2,152,500.00

Recon
SHE Beg 4,750,000.00 4,850,000.00 6,195,000.00
Issuance of shares 970,000.00
NI 100,000.00 550,000.00 700,000.00
Div - (175,000.00) (500,000.00)
SHE End 4,850,000.00 6,195,000.00 6,395,000.00
Share 40% 33% 33%
SBVNA 1,940,000.00 2,065,000.00 2,131,666.67
Goodwill 180,000.00 150,000.00 150,000.00
Excess
CA 120,000.00 100,000.00 -
PPE (200,000.00) (166,666.67) (166,666.67)
Amort PPE 20,000.00 33,333.33 50,000.00
Intercompany
Equipment (30,000.00) (25,000.00) (25,000.00)
Amort Eqpt 3,000.00 7,500.00 12,500.00
Inventory (38,888.89)
IIA 2,033,000.00 2,125,277.78 2,152,500.00

Check - - -
Loss on deemed sold 15,500.00
15,500.00

7% 338,833.33
33% 323,333.33
Loss on dilution (15,500.00)
Scenario B

2001 2002 2003

NI 100,000.00 550,000.00 700,000.00
Share 40% 33% 33%
40,000.00 183,333.33 233,333.33
Amortization of excess
Current Assets (100,000.00) 300,000.00
PPE 20,000.00 16,666.67 16,666.67 500,000.00
Intercompany
2001 Equipment UGP (30,000.00) 75,000.00
2001 Equipment RGP 3,000.00 5,000.00 5,000.00
2002 Inventory UGP (38,888.89) 500,000.00
2002 Inventory RGP 38,888.89
SIANI 33,000.00 166,111.11 193,888.89
Gain/Loss on deemed disposal 27,833.33
IIA, beg 2,000,000.00 2,033,000.00 2,168,611.11
Div - (58,333.33) (166,666.67)
IIA, end 2,033,000.00 2,168,611.11 2,195,833.33

Recon
SHE Beg 4,750,000.00 4,850,000.00 6,325,000.00
Issuance of shares 1,100,000.00
NI 100,000.00 550,000.00 700,000.00
Div - (175,000.00) (500,000.00)
SHE End 4,850,000.00 6,325,000.00 6,525,000.00
Share 40% 33% 33%
SBVNA 1,940,000.00 2,108,333.33 2,175,000.00
Goodwill 180,000.00 150,000.00 150,000.00
Excess
CA 120,000.00 100,000.00 -
PPE (200,000.00) (166,666.67) (166,666.67)
Amort PPE 20,000.00 33,333.33 50,000.00
Intercompany
Equipment (30,000.00) (25,000.00) (25,000.00)
Amort Eqpt 3,000.00 7,500.00 12,500.00
Inventory (38,888.89)
IIA 2,033,000.00 2,168,611.11 2,195,833.33

Check - - -
Share lost 7% 338,833.33
Share on i 33% 366,666.67
Gain/Loss on dilution 27,833.33
Scenario C

2001 2002 2003

NI 100,000.00 550,000.00 700,000.00
Share 40% 33% 33%
40,000.00 183,333.33 233,333.33
Amortization of excess
Current Assets (100,000.00) 300,000.00
PPE 20,000.00 16,666.67 16,666.67 500,000.00
Intercompany
2001 Equipment UGP (30,000.00) 75,000.00
2001 Equipment RGP 3,000.00 5,000.00 5,000.00
2002 Inventory UGP (38,888.89) 500,000.00
2002 Inventory RGP 38,888.89
SIANI 33,000.00 166,111.11 193,888.89
Gain/Loss on deemed disposal (55,500.00)
IIA, beg 2,000,000.00 2,033,000.00 2,085,277.78
Div - (58,333.33) (166,666.67)
IIA, end 2,033,000.00 2,085,277.78 2,112,500.00

Recon
SHE Beg 4,750,000.00 4,850,000.00 6,075,000.00
Issuance of shares 850,000.00
NI 100,000.00 550,000.00 700,000.00
Div - (175,000.00) (500,000.00)
SHE End 4,850,000.00 6,075,000.00 6,275,000.00
Share 40% 33% 33%
SBVNA 1,940,000.00 2,025,000.00 2,091,666.67
Goodwill 180,000.00 150,000.00 150,000.00
Excess
CA 120,000.00 100,000.00 -
PPE (200,000.00) (166,666.67) (166,666.67)
Amort PPE 20,000.00 33,333.33 50,000.00
Intercompany
Equipment (30,000.00) (25,000.00) (25,000.00)
Amort Eqpt 3,000.00 7,500.00 12,500.00
Inventory (38,888.89)
IIA 2,033,000.00 2,085,277.78 2,112,500.00

Check - - -
Share lost 7% 338,833.33
Share on i 33% 283,333.33
Gain/Loss on dilution (55,500.00)
Scenario 2.A

2001 2002 2003

NI 100,000.00 550,000.00 700,000.00
Share 40% 44% 44%
40,000.00 244,444.44 311,111.11
Amortization of excess
Current Assets (133,333.33) 300,000.00
PPE 20,000.00 22,222.22 22,222.22 500,000.00
Intercompany
2001 Equipment UGP (30,000.00) 75,000.00
2001 Equipment RGP 3,000.00 6,666.67 6,666.67
2002 Inventory UGP (51,851.85) 500,000.00
2002 Inventory RGP 51,851.85
SIANI 33,000.00 221,481.48 258,518.52
Gain/Loss on deemed disposal (18,555.56)
IIA, beg 2,000,000.00 2,033,000.00 2,158,148.15
Div - (77,777.78) (222,222.22)
IIA, end 2,033,000.00 2,158,148.15 2,194,444.44 IIA

RECON 2001 2002 2003

SHE Beg 4,750,000.00 4,850,000.00 4,675,000.00
Acquisition of TS (550,000.00)
NI 100,000.00 550,000.00 700,000.00
Div - (175,000.00) (500,000.00)
SHE End 4,850,000.00 4,675,000.00 4,875,000.00
Share 40% 44% 44%
SBVNA 1,940,000.00 2,077,777.78 2,166,666.67
Goodwill 180,000.00 200,000.00 200,000.00
Excess
CA 120,000.00 133,333.33 -
PPE (200,000.00) (222,222.22) (222,222.22)
Amort PPE 20,000.00 44,444.44 66,666.67
Intercompany
Equipment (30,000.00) (33,333.33) (33,333.33)
Amort Eqpt 3,000.00 10,000.00 16,666.67
Inventory (51,851.85)
IIA 2,033,000.00 2,158,148.15 2,194,444.44

Check - - -
Additional share 4.444444% 225,888.89
Share on decrese 44% 244,444.44
Gain/Loss on dilution (18,555.56)

5% 250,000.00

254,125.00
Cash 300,000.00
Gain/Loss (45,875.00)
Scenario 2.B

2001 2002 2003

NI 100,000.00 550,000.00 700,000.00
Share 40% 44% 42%
40,000.00 244,444.44 294,736.84
Amortization of excess
Current Assets (126,315.79) 300,000.00
PPE 20,000.00 22,222.22 21,052.63 500,000.00
Intercompany
2001 Equipment UGP (30,000.00) 75,000.00
2001 Equipment RGP 3,000.00 6,666.67 6,315.79
2002 Inventory UGP (51,851.85) 500,000.00
2002 Inventory RGP 49,122.81
SIANI 33,000.00 221,481.48 244,912.28
Gain/Loss on deemed disposal (18,555.56) 15,886.94
IIA, beg 2,000,000.00 2,033,000.00 2,158,148.15
Div - (77,777.78) (210,526.32)
IIA, end 2,033,000.00 2,158,148.15 2,208,421.05

Recon
SHE Beg 4,750,000.00 4,850,000.00 4,675,000.00
Acquisition of TS (550,000.00) 307,500.00
NI 100,000.00 550,000.00 700,000.00
Div - (175,000.00) (500,000.00)
SHE End 4,850,000.00 4,675,000.00 5,182,500.00
Share 40% 44% 42%
SBVNA 1,940,000.00 2,077,777.78 2,182,105.26
Goodwill 180,000.00 200,000.00 189,473.68
Excess
CA 120,000.00 133,333.33 -
PPE (200,000.00) (222,222.22) (210,526.32)
Amort PPE 20,000.00 44,444.44 63,157.89
Intercompany
Equipment (30,000.00) (33,333.33) (31,578.95)
Amort Eqpt 3,000.00 10,000.00 15,789.47
Inventory (51,851.85)
IIA 2,033,000.00 2,158,148.15 2,208,421.05

Check - - -
Additional share 4% 225,888.89
Share on decrese in equity 44% 244,444.44
Gain/Loss on dilution (18,555.56)

Deemed disposal 2% 113,586.74

Share on increase in equity 42% 129,473.68
15,886.94