Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Acquisition Assumptions Acquisition of Facebook by Amazon PP&E, Goodwill and Other Intangibles Assumptions Total Book Value of PP&E, Goodwill and Other Intangibles $71,505 FMV of
Acquisition Assumptions Acquisition of Facebook by Amazon PP&E, Goodwill and Other Intangibles Assumptions Total Book Value of PP&E, Goodwill and Other Intangibles $71,505 FMV of PP&E, Goodwill and Other Intangibles $766,981 FMV of PP&E, Goodwill and Intangibles Attributed to Depreciable Property 71.50% FMV of PP&E, Goodwill and Intangibles Attributed to Non-Depreciable Property 28.50% Average Amortization Period (Years) 13.5 Years $187,038 4.0% 10 Years 0.5% Debt Assumptions Debt issued for acquisition of Facebook Interest on New Debt Term of New Debt New Debt Financing Fees Other Assumptions Other Transaction Costs Effective Tax Rate Amazon Net Earnings Facebook Net Earnings $20 30.0% S23,688 S30,133 14 Review Later Additional annual interest expense due to new debt issued in relation to the transaction is: $9,393 $8,383 $7,482 $38,393
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started