Softdata, Inc. acquires all the net assets of Datalink Corporation, recording the combination as a statutory merger.

Question:

Softdata, Inc. acquires all the net assets of Datalink Corporation, recording the combination as a statutory merger. The balance sheets of Softdata and Datalink immediately prior to the acquisition, along with fair value information for Datalink's reported assets and liabilities, are as follows:

Datalink also has the following previously unreported intangible assets that meet U.S. GAAP requirements for asset recognition:
(in millions)Fair Value
Brand names ...................... $10
Software ............................ 50
Softdata issues 500,000 shares of stock with a fair value of $70 million, and pays cash of $12 million to the former owners of Datalink. Stock registration fees are $1 million and legal and consulting fees are $2 million, all paid in cash. .
Required
Record the acquisition entry and prepare Softdata's balance sheet immediately after it acquires Datalink

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