In the past several years, CVS has made major acquisitions of Caremark Rx, Inc.; Longs Drug Stores;

Question:

In the past several years, CVS has made major acquisitions of Caremark Rx, Inc.; Longs Drug Stores; and Generation Health. Refer to the annual report of CVS in the Supplement to Chapter 1. Which account in CVS’s balance sheet would lead you to believe that CVS paid substantially more in total than the aggregate fair value of the net tangible and intangible assets of these companies? Explain your answer.

Intangible Assets
An intangible asset is a resource controlled by an entity without physical substance. Unlike other assets, an intangible asset has no physical existence and you cannot touch it.Types of Intangible Assets and ExamplesSome examples are patented... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...