In 2021, Google, a company that specializes in internet-related service, acquired Fitbit, the fitness tracking company, to bolster its wearable capabilities. Google paid shareholders $7.25 per share in cash. This is an example of which of the following? Group of answer choices horizontal acquisition conglomerate acquisition vertical acquisition merger

In 2021, Google, a company that specializes in internet-related service, acquired Fitbit, the fitness tracking company, to bolster its wearable capabilities. Google paid shareholders $7.25 per share in cash. This is an example of which of the following? Group of answer choices horizontal acquisition conglomerate acquisition vertical acquisition merger

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 19DQ

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Ch. 29. In 2021, Google, a company that specializes in internet-related service, acquired Fitbit, the fitness tracking company, to bolster its wearable capabilities. Google paid shareholders $7.25 per share in cash. This is an example of which of the following? Group of answer choices merger horizontal acquisition vertical acquisition conglomerate acquisition
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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. Why did Celgene acquire Recentos?
In 2020, CVR Energy, Inc. began purchasing stocks of Delek US Holdings, Inc. CVR acquired 15% stake in Delek in hopes to replace 3 of Delek’s board members. This is an example of which of the following? Group of answer choices white knight tender offer street sweep Which ONE of the following is not correct regarding the possible benefits of an acquisition? Group of answer choices revenue enhancement lower taxes cost reduction increased capital requirements The most obvious way to hedge against ___________________ in currency conversions is to enter into a forward exchange agreement to lock in an exchange rate. Group of answer choices short-term exposure International Fisher effect long-term exposure political risk True/ False. The International Fisher effect states that the real rates are equal across countries. Group of answer choices True False
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…
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?
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. 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)?
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. What accounting method was used, and for what amount, to record the acquisition?
VMware, Inc. is a subsidiary of Dell Technologies Inc.. providing customers with IT resource management. In fiscal 2020, VMware acquired Avi Networks, Inc., a provider of multi- cloud application delivery services, for $335 million. This price reflected goodwill of $228 million and identifiable intangible assets of $94 million. Assume that VMware paid the acquisition price in cash, and also incurred $10 million in acquisition-related legal and advisory services, paid in cash. Required a. What was the fair value of tangibile net assets, if any, that VMware recognized at the date of acquisition? Note: Provide all answers in millions, million b. Prepare the journal entry to record this business combination. Debit > > > > > Credit
Use the following facts for Multiple Choice problems 28 and 29: Assume on January 1, 2022, the investor company issued 10,000 new shares of the investor company's com- mon stock in exchange for all of the individually identifiable assets and liabilities of the investee company. The investee company qualifies as a business. Fair value approximates book value for all of the investee's identifiable net assets. The transaction resulted in no goodwill or bargain purchase gain. The following financial statement information is for an investor company and an investee company on January 1, 2022, prepared immediately before this transaction. Receivables & inventories Land. Property & equipment... Total assets.... Liabilities... Common stock ($1 par) Additional paid-in capital. Retained earnings. Total liabilities & equity. Net Assets **** 28. Asset acquisition (fair value equals book value) What is the per share fair value of the investor's common stock? . c. $42.00/share d. $58.80/share a.…
Ch. 29. In 2020, CVR Energy, Inc. began purchasing stocks of Delek US Holdings, Inc. CVR acquired 15% stake in Delek in hopes to replace 3 of Delek’s board members. This is an example of which of the following? Group of answer choices white knight street sweep tender offer
On January 1, 2018, Deuce Inc. acquired 15% of Wiz Co's outstanding common stock for $62,400 and categorized the investment as an available-for-sale security. Wiz earned net income of $96,000 in 2018 and paid dividends of $36,000. On January 1, 2019, Deuce bought an additional 10% of Wiz for $54,000. This second purchase gave Deuce the ability to significantly influence the decision making of Wiz. During 2019, Wiz earned $120,000 and paid $48,000 in dividends. As of December 31, 2019, Wiz reported a net book value of $468,000. For both purchases, Deuce concluded that Wiz Co.'s book values approximated fair values and attributed any excess cost to goodwill. What amount of equity income should Deuce have reported for 2019? A) $18,000 B) $16,420 C) $38,340 D) $27,360 E) $32,840