Kmart started in 1899 as the S. S. Kresge Company, better known as the five-and-dime store. Sears has its roots in the 1880s and incorporated as Sears, Roebuck and Company in 1893. In 2005, the two companies joined together in a business combination.
Required
a. What major event for Kmart occurred in 2002? How was that issued resolved?
b. What form of business combination brought Sears and Kmart together, and what was the resulting corporate structure?
c. In the business combination involving Sears and Kmart, which company acquired the other? On what basis was this determination made? What accounting implications did the choice of acquirer have?