ACCT6301:783-Accounting Analysis Summer 1 2018 My Subscriptions / Courses ACCT63

Question

ACCT6301:783-Accounting Analysis Summer 1 2018 My Subscriptions / Courses ACCT6301:783-Accounting Analysis Summer 1 2018 / Module 9/H09 QUESTION 7 Partialy correct Man 160 out of 2.00 Remove og Allocating Purchase Price Adobe Systems Inc. reports the following footnote to its 10-K report On January 27, 2015, we completed our acquisition of privately held Fotolia. a leading marketplace for royality free photos, images, graphics and HD videos. During the first quarter of fiscal 2015. we began integrating Fotolia into our Digital Media reportable segment. Under the acquisition method of accounting, the total final purchase price was allocated to Fotolla's net tangible and intangible assets based upon their estimated fair values as of january 27, 2015. The total final purchase price for Fotolia was $819.9 million of which $751.3 million was allocated to goodwill that was nondeductible for tax purposes, 210.6 million to identifiable intangible assets and $1420 million to net liabilties assumed. a. Of the total assets acquired, what portion is allocated to net intangible assets? Round answer to one decimal place (ec 0.2345 23.5%) What portion was allocated to tangible assets such as inventory and PPE? b. Are the assets and liabilities of Fotolia reported on the consolidated balance sheet at the book value or at the fair value on the date of the acquisition? All assets and liabilities of Fotolla are reported at fair value on the consolidated balance sheet c How are the intangible assets accounted for subsequent to the acquisition? ?intangible assets with a determinable life are amortized over their useful les ntang ble assets with an neterminate useful ile are amortizedover , 10 year per nnually for impairment intangole asses wth a deterninable lfe are amortized over their useful lives:intangble assets with an indeterminate usetful lte are not dr dare test indeterminate useful life are not amortized, nor are they tested annualy for assets with a determinable life are amortized over their useful lives intangible assets with an mpairment le assets with a determinable life are amortized over their useful ives: i ntangible assets with an indeterminate useful life are amortized over 15 years and are tested annually for impairment

Explanation / Answer

(Figure in $) Purchase Price 819.9 Millions Goodwill 751.3 Millions Identifiable Intangible Assets 210.6 Millions Total 961.9 Net Tangible Assets 117.3% It shoould be 117.3% , if this is also wrong then let me know

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.