On January 31, 2018, The Hershey Company acquired Amplify Snack Brands, Inc., its largest business acquisition to date. Access Hershey’s 2018 financial statements and media reports near the time of the acquisition, and answer the following questions.

1. Why did Hershey acquire Amplify Snack Brands?

2. How did Hershey account for Amplify’s cash acquired in the business combination?

3. What amount of goodwill did Hershey recognize in the combination? Prepare a schedule that computes the goodwill recognized in the acquisition as the difference between the consideration transferred for Amplify and the fair values of the individually identified assets and liabilities acquired.

4. How did Hershey determine the fair values of Amplify’s assets?

5. What were the acquisition-related costs Hershey incurred regarding the combination, and how were these costs accounted for?

6. How did Hershey report the Amplify acquisition in its statement of cash flows?