During 2005, eBay acquired four different companies. In the schedule below, the acquired companies are listed with the aggregate purchase price and with the estimated acquisition-related costs (dollars in thousands). Acquired Company Rent.com International classified websites Shopping.com Skype Aggregate Purchase Price $435,365 81,584 685.285 2,593,426 Acquisition-related costs $2,000 1,300 7.600 Not reported eBay acquired various websites when it acquired International classified websites. The excess of the purchase price over the fair value of net tangible assets and identifiable intangible assets was $71,771 thousand (or approximately 88% of the purchase price). What does this amount represent, and why is this not unusual for an acquisition of this type?
Q: Williams-Santana, Inc., is a manufacturer of high-tech industrial parts that was started in 2009 by…
A: The books of accounts maintained by the company may sometimes have errors due to mistakes made by…
Q: What are some quantitative and some qualitative reasons for budget variances?
A: Budget variance is a measure used by entities, government organizations, corporations, or…
Q: and the yearly benefit is $250,000, with a maintenance cost (starting in year 1) of $50,000, is…
A: Internal rate of return(IRR) is the original or actual rate of return(ROR) being resulted by a…
Q: Required information [The following information applies to the questions displayed below.] The first…
A: FIFO METHOD :— Under this method, equivalent units is calculated by adding equivalent units in…
Q: Laura Hall, CEO of Wildhorse Industries, is concerned about the recent volatility in the company's…
A: The unit product cost under the variable costing, here, would be determined by dividing the variable…
Q: On May 10, Cullumber Company sold merchandise for $3,600 and accepted the customer's Best Business…
A: JOURNAL ENTRIES Journal Entry is the First stage of Accounting Process. Journal Entry is the Process…
Q: (a) Your Answer Correct Answer Determine the interest amount that could be capitalized in 2020 in…
A: Company made the following expenditures related to this building structure as follows:- March 1,…
Q: ABOUT BOND IN DETAIL
A: Bonds are the financial debt instruments. Which can be issued at a premium, at a discount, or at…
Q: Marigold Inc. manufactures cycling equipment. Recently, the vice president of operations of the…
A: Selling price of the bond = PV of interest payment + PV of principal
Q: The maximum machine - hours available are 6,000 per week. What is the contribution margin per…
A: The contribution Margin is calculated as difference between sales and variable cost. The net income…
Q: In the reconciliation of the investment in branch account and home office account, which of the…
A: Reconciliation in a branch account refers to the process of comparing and adjusting the balances in…
Q: Lewis Corporation issued 5,000 shares of $7 par value common stock for $18 per share. The entry to…
A: Total cash received = Number of share issued * issue price per share = 5,000 * $18 = $90,000.…
Q: Walton Company collected $14,400 in September of 2022 for 4 months of service which would take place…
A: Amount collected per month = $14,400/4months = $3600
Q: 40 2010040 Aztec Industries produces bread whi goes through two operations, Mixing and activities…
A: Overhead costs are an important consideration for any business, and effective management of these…
Q: Using the EIC tables calculate the amount of her 2022 earned income credit.
A: Given in the question: Earned Income = $8,500 Adjusted Gross Income = $10,000 The year is 2022 It…
Q: As consultants in advisory services, we are hired by Sayko Corp to help analyze its regional…
A: Ratio analysis used identify the business performance of the company. It is used to measure…
Q: Chaz Corporation has taxable income in 2020 of $312,000 for purposes of computing the §179 expense…
A: Depreciation is the decrease in the value of the asset. depreciation is the way of allocating the…
Q: operations: Budgeted selling price per unit Budgeted unit sales (all on credit): April May June July…
A: Credit sales is termed as the amount that arises from the sale of goods or services on account. The…
Q: Tao Company has fixed costs of $886,220 Its single product sells for $490 per unit, and variable…
A: Variable costs are costs that varies with the change in the level of output whereas fixed costs are…
Q: Required: Calculate the company’s taxable income for the year after considering some adjustments…
A: The question provides information about outstanding expenses for Thamaga (Pvt) Ltd as of June 30,…
Q: Budgetary Performance for Cost Center Bahrke Company's costs were over budget by $53,900. The…
A: In this question, we need to determine the amount that south region's cost were over or under…
Q: 9. Enter the following transaction in a Petty Cash Book (attached), with analysis columns: postag…
A: A petty cash book is maintained to record small expenses incurred for running the office. These…
Q: The marketing department of Jessi Corporation has submitted the following sales forecast for the…
A: Here we will have to make a cash budget and a materials production budget statement. The cash budget…
Q: fit is $24.00 per unit. ermine the markup percentage using the (a) total cost, (b) product cost, and…
A: The markup is the excess amount charged as compared to product cost. The markup percentage is…
Q: The following information describes a company’s usage of direct labor in a recent period. The total…
A: Labor variance is the difference between the estimated cost and the actual cost of labor. When the…
Q: $7.57 sales tax was collect when a jacket was purchased. The sales tax was 9.1% of the price of the…
A: Hi student Since there are multiple questions, we will answer only first question. Taxes are the…
Q: Cabin Creek Company is considering adding of a new line of kitchen cabinets. The company's…
A: Financial advantage refers to incremental net operating income and financial disadvantage refers to…
Q: JungleKidz is a leading manufacturer for children's indoor playgrounds. It has provided you the…
A: Activity Based Costing (ABC Costing) Under the ABC Costing overheads are allocated on the basis of…
Q: Osprey Cycles, Inc., projected sales of 69,359 bicycles for the year. The estimated January 1…
A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…
Q: Sister Tool Co. is considering investing in specialized equipment costing $620,000. The equipment…
A: AVERAGE ANNUAL OPERATING INCOME FOR THE ASSETS Average Annual Operating Income for the Assets is the…
Q: Brooks Inc. issued a $220,000, six-month, 6% note to purchase equipment on August 1, 2022. Brooks…
A: Journal Entry is the primary step to record the transaction in the books of accounts. The increase…
Q: Richie's Tennis Shop has the following transactions related to its top-selling Wilson tennis racket…
A: Hi student Since there are multiple subparts asked, we will answer only first three subparts.…
Q: life (8 years) $20,000. At the van can be sold for $3000. Determine the PW of the depreciation…
A: As per the Honor code of Bartleby we are bound to given the answer of first three sub part only,…
Q: Halep Inc. borrowed $10,771 from Davis Bank and signed a 8-year note payable stating the interest…
A: Annual payment amount = Loan amount/Present value of annuity factor
Q: Jamie is single. In 2022, she reported $106,000 of taxable income, including a long-term capital…
A: Given the fact that Jamie is single with taxable income of $106,000 that includes $5,600 long term…
Q: Young Company issued bonds with a face value of $127,000, a stated rate of interest of 11 percent,…
A: Bonds are the financial debt instruments. When the contract rate of interest is more than the market…
Q: From the following, calculate (A) net sales, (B) gross profit, (C) total operating expenses, and (D)…
A: Income statement: The income statement shows the company's revenues and expenses earned during the…
Q: Richle's Tennis Shop has the following transactions related to its top-selling Wilson tennis racket…
A: The specific identification method relates to inventory valuation, specifically keeping track of…
Q: 12 Part 1 of 5) eBook Ask Priet Required information. [The following information applies to the…
A: Preference shares are shares of a company's stock with dividends that are paid out to shareholders…
Q: Payroll for the month of May is as follows: • FICA Social Security tax rate at 6.2% FICA Medicare…
A: Net pay is an employee's earnings after considering all deductions
Q: Nate bought a home for $143,000 with a down payment of $15,000. Nate's rate of interest is 6.75% for…
A: When we buy a large ticket item like a home we usually take loan for that. The loan is repaid…
Q: Using these data from the comparative balance sheet of Rollaird Company, perform horizontal…
A: In this question, we need to perform the horizontal analysis for the selected items given from the…
Q: Using the tables in Exhibits 26-3 and 26-4, determine the present value of the following cash flows,…
A: A sum of money in the hand has greater value than the same sum to be paid in the future.
Q: A company sells cakes for special occasions. It measures its output by the number of cakes produced.…
A: Flexible budget is not static and is prepared for the actual units to make performance evaluation…
Q: PP Co. regularly sells merchandise to its 80%-owned subsidiary, SS Co. In 2021, PP sold merchandise…
A: Cost of Sales: It refers to the direct costs incurred by a company in producing or acquiring goods…
Q: Using your calculations above, prepare a journal entry to adjust the allowance account. Even if you…
A: Allowance for doubtful accounts is determined as the reduction in the accounts receivable that…
Q: ABC Company owns an 80% interest in XYZ Corporation at underlying book value. ABC's investment in…
A: The consolidated gross profit is computed by eliminating the gross profit included in the unsold…
Q: Balance sheet Assets Non-current assets Property, plant and equipment Long-term receivables Total…
A: Statement of Cash Flow - A cash flow statement is a financial statement that includes the inflow and…
Q: J&H Company has a router platform with a book value of $78,000 and a three-year remaining life. A…
A: Total decrease in net income in the 3 remains years are as follows $32300 × 3 years reduction in…
Q: Discuss the main reasons why accounting profit of a business has to be adjusted when computing…
A: Accounting profit is the profit earned on account of business operations, it is financial gains…
Accounting
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- On August 27, 2015, Celgene Corporation acquired all of the outstanding stock of Receptos, Inc., in exchange for $7.6 billion in cash. Referring to Celgene’s 2015 financial statements and its July 14, 2015, press release announcing the acquisition, answer the following questions regarding the Receptos acquisition.1. Why did Celgene acquire Receptos?2. What accounting method was used, and for what amount, to record the acquisition?3. What amount did Celgene include in pre-combination service compensation in the total consideration transferred? What support is provided for this treatment in the Accounting Standards Codification (see ASC 805-30-30, paragraphs 9-13)?4. What allocations did Celgene make to the assets acquired and liabilities assumed in the acquisition? Provide a calculation showing how Celgene determined the amount allocated to goodwill.5. Describe the nature of the in-process research and development product rights acquired by Celgene in its acquisition of Receptos.6. How…AsapOn August 27, 2015, Celgene Corporation acquired all of the outstanding stock of Receptos, Inc., in exchange for $7.6 billion in cash. Referring to Celgene's 2015 financial statements and its July 14, 2015, press release announcing the acquisition, answer the following questions regarding the Receptos acquisition. Why did Celgene acquire Recentos?
- On August 27, 2015, Celgene Corporation acquired all of the outstanding stock of Receptos, Inc., in exchange for $7.6 billion in cash. Referring to Celgene's 2015 financial statements and its July 14, 2015, press release announcing the acquisition, answer the following questions regarding the Receptos acquisition. How will Celgene account for the in-process research and development product rights acquired in the Receptos combination?Business Combination Versus Asset Acquisition As part of a project, Webflow Inc. acquires these assets from Digital Sea Company (in millions): Fair Value $4 Cash Trading debt investments Equipment in process R&D 6 240 60 The in-process R&D has no alternative future use. Webflow pays $335 million in cash for the acquired assets, and also pays $5 million in cash for legal and advisory costs Note: Provide all answers in millions and round answers to the nearest whole number. For example. 16.355.000 would be 16. a Prepare the journal entry to record the acquisition if it qualifies as a business combination. Debit Credit Cash to record the business combination 0 0 0 0 0 D O 0 10 0 0 0 340 it is an ecat acnuutine Ama the cash and die thindacateOn August 27, 2015, Celgene Corporation acquired all of the outstanding stock of Receptos, Inc., in exchange for $7.6 billion in cash. Referring to Celgene's 2015 financial statements and its July 14, 2015, press release announcing the acquisition, answer the following questions regarding the Receptos acquisition. What amount did Celgene include in pre-combination service compensation in the total consideration transferred? What support is provided for this treatment in the Accounting Standards Codification (see ASC 805-30-30, paragraphs 9-l3)?
- Pritano Company acquired all the net assets of Succo Company on December 31, 2013, for $2,185,400 cash. The balance sheet of Succo Company immediately prior to the acquisition showed: Book value Fair value Current assets $ 871,440 $871,440 Plant and equipment 1,025,090 1,437,590 Total $1,896,530 $2,309,030 Liabilities $194,060 $207,670 Common stock 484,800 Other contributed capital 632,900 Retained earnings 584,770 Total $1,896,530 As part of the negotiations, Pritano agreed to pay the stockholders of Succo $356,690 cash if the post-combination earnings of Pritano averaged $2,185,400 or more per year over the next two years. The estimated fair value of the contingent consideration was $143,480 on the date of the acquisition. (a) Prepare the journal entry on the books of Pritano to record the acquisition on December 31, 2013. (If no entry is required, select…Pritano Company acquired all the net assets of Succo Company on December 31, 2013, for $2,234,440 cash. The balance sheet of Succo Company immediately prior to the acquisition showed: Book value Fair value Current assets $ 962,320 $962,320 Plant and equipment 1,186,440 1,337,450 Total $2,148,760 $2,299,770 Liabilities $191,390 $214,050 Common stock 471,160 Other contributed capital 584,100 Retained earnings 902,110 Total $2,148,760 As part of the negotiations, Pritano agreed to pay the stockholders of Succo $385,210 cash if the post-combination earnings of Pritano averaged $2,234,440 or more per year over the next two years. The estimated fair value of the contingent consideration was $148,740 on the date of the acquisition. (a) Prepare the journal entry on the books of Pritano to record the acquisition on December 31, 2013. (If no entry is required, select…On July 1, 2022 the ABC Company acquired the net assets of XYZ Company for P8,000,000. The recorded assets and liabilities of XYZ Corporation on July 1, 2022, immediately before the acquisition are as follows: Cash P 800,000 Inventory 2,400,000 Property and equipment, net 4,800,000 Liabilities 1,800,000 On July 1, 2022 it was determined that the inventory of XYZ had a fair value of P1,900,000, and the property and equipment, net had a fair value of P5,600,000. What is the amount of goodwill (gain on bargain purchase) that will be reported in the books of ABC?
- On January 2, 2014, Prunce Company acquired 90% of the outstanding common stock of Sun Company for $180,700 cash. Just before the acquisition, the balance sheets of the two companies were as follows: Prunce Sun Cash $282,130 $ 59,040 Accounts receivable (net) 142,020 24,810 Inventory 118,670 53,230 Plant and equipment (net) 395,640 92,960 Land 62,550 29,220 Total asset $1,001,010 $259,260 Accounts payable $106,440 $ 50,420 Mortgage payable 67,320 37,660 Common stock, $2 par value 421,400 76,960 Other contributed capital 217,440 21,970 Retained earnings 188,410 72,250 Total equities $1,001,010 $259,260 The fair values of Sun Company’s assets and liabilities are equal to their book values with the exception of land. (a) Your answer is correct. Prepare a journal entry to record the purchase of Sun Company’s common stock.…Pritano Company acquired all the net assets of Succo Company on December 31, 2013, for $2,145,600 cash. The balance sheet of Succo Company immediately prior to the acquisition showed: Book value Fair value Current assets $ 995,110 $995,110 Plant and equipment 979,390 1,375,740 Total $1,974,500 $2,370,850 Liabilities $187,040 $235,560 Common stock 524,720 Other contributed capital 588,400 Retained earnings 674,340 Total $1,974,500 As part of the negotiations, Pritano Company agreed to issue 9,230 additional shares of its $10 par value common stock to the stockholders of Succo if the average postcombination earnings over the next three years equaled or exceeded $2,481,300. The fair value of the contingent consideration on the date of acquisition was estimated to be $219,700. The contingent consideration (earnout) was classified as equity rather than as a liability.…Arizona Corporation acquired the business Data Systems for $320,000 cash and assumed all liabilities at the date of purchase. Data's books showed tangible assets of $260,000, liabilities of $40,000, and stockholders' equity of $220,000. An appraiser assessed the fair market value of the tangible assets at $250,000 at the date of acquisition. Arizona Corporation's financial condition just prior to the acquisition is shown in the following statements model. Required a. Compute the amount of goodwill acquired. b. Record the acquisition in a financial statements model like the preceding one. Complete this question by entering your answers in the tabs below. Required A Required B Record the acquisition in a financial statements model. Note: In the Statement of Cash Flows column, use the initials OA for operating activities, FA for financing activities, or IA for investing activity. Enter any cash outflows or decreases to account balances with a minus sign. Leave cells blank if no input is…