In 2013, the online travel company priceline.com, Inc. acquired KAYAK Corporation, a travel meta-search website. Amounts paid related to the acquisition were as follows (dollars in thousands):

The fair values of identifiable assets acquired and liabilities assumed are listed below.

Required

a. Calculate the acquisition cost for KAYAK. Calculate the amount of acquisition expense reported on priceline.com’s income statement in 2013.

b. Calculate priceline.com’s net credit to additional paid-in capital for this acquisition. Round amounts to the nearest thousand, if necessary.

c. Calculate the amount of goodwill recognized for this acquisition.

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Cash paid to the former shareholders of KAYAK. Fair value of 1,522,000 shares of $0.008 par common stock issued to former shareholders of KAYAK.. Fair value of assumed vested KAYAK stock options, related to pre-combination service Fair value of unvested KAYAK stock options, related to post-combination service Stock issuance costs. Professional consulting fees $ 521,443 1,282,334 264,423 57,400 1,200 8,500