Allocating Purchase Price Adobe Systems Inc. reports the following footnote to i

Question

Allocating Purchase Price
Adobe Systems Inc. reports the following footnote to its 10-K report.

Fotolia On January 27, 2015, we completed our acquisition of privately held Fotolia, a leading marketplace for royalty-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 Fotolia’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 $142.0 million to net liabilities assumed.

a. Of the total assets acquired, what portion is allocated to net intangible assets?
Round answer to one decimal place (ex: 0.2345 = 23.5%)

Answer

%

Explanation / Answer

Particulars Amt. in Million Total amount paid for Goodwill 751.3 a Amount paid for Intangible assets 210.6 b Total Assets 961.9 c = a+b Less: Net liabilities assumed 142.0 d Total Final Purchase price 819.9 e Amount paid for identifiable Intangible assets % 21.89% f = b/c*100 Amount paid for Intangible assets (incl Goodwill) of Total Final pur. price % 117.32% g = c/e*100

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