Question
a. UmbrellaAcademy3 , Inc. purchased another company StrangerThings4 , Corp. in its entirety for $165 million in cash (i.e., this is an M&A). Below is
a. UmbrellaAcademy3, Inc. purchased another company StrangerThings4, Corp. in its entirety for $165 million in cash (i.e., this is an M&A). Below is a list of the assets and liabilities that StrangerThings4 has (book values refer to how they appeared on StrangerThings4' Balance Sheet before the acquisition, while fair values are determined as a result of independent evaluation).
StrangerThings4 Assets and Liabilities:
Book Value Fair Value
- Accounts Receivable: 35 30
- PP&E 30* 35
- Goodwill from prior acquisitions 45
- Copyrights (internally developed) 70
- Accounts Payable 18 18
- Deferred Tax Liability 16 12
*BV of PP&E is comprised of Gross PP&E of 50 minus Accumulated Depreciation of 20
What assets does UmbrellaAcademy3 add to its Balance Sheet as a result of this M&A
Asset Name Amount
What liabilities does UmbrellaAcademy3 add to its Balance Sheet as a result of this M&A
Liability Name Amount
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