In fiscal 2013, Avnet, Inc. acquired several companies. The following table summarizes the date-of-acquisition fair values of the net assets acquired (in thousands).

Avnet incurred \($116,382\) thousand in out-of-pocket costs related to these acquisitions. 

Required

a. Avnet's disclosure of its acquisitions shows that it recorded both goodwill and a bargain gain on acquisitions. Explain how this can happen.

b. Assume Avnet paid all acquisition costs in cash. Prepare Avnet's summary entry to record its 2013 acquisitions.

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Cash.. Accounts receivable, net Inventory.. Other current assets. Property, plant and equipment. Customer relationships Other assets.... Total identifiable assets acquired. Current liabilities... Long-term debt Total liabilities assumed Net identifiable assets acquired. Goodwill.. Bargain gain. Acquisition cost $ 29,276 226,743 91,791 33,689 25,311 35,248 12,044 454,102 (157,986) (112,007) (269,993) 184,109 157,521 (32,679) $308,951