Question
AFS4-3 Various Acquisitions During 2005, eBay acquired 100% of four different companies as follows (assume all companies havea December 31 year-end). Net income amounts are
AFS4-3
Various Acquisitions
During 2005, eBay acquired 100% of four different companies as follows (assume all companies havea December 31 year-end). Net income amounts are stated in thousands of dollars; assume that the net
income is earned uniformly throughout the year 2005.
2005 Annual
Company Acquired on Net Income
Rent.com February 1, 2005 $12,000
International classified websites April 1, 2005 5,000
Shopping.com September 1, 2005 20,000
Skype October 14, 2005 120,000
Required:
A. How much of the income earned by each of these companies will be recorded in consolidated
net income in the year of acquisition?
B. In addition to reported earnings for the year of acquisition, GAAP requires certain pro forma
earnings disclosures for the consolidated entity. What amount of earnings from each of these acquisitions would be included in proforma earnings disclosures?
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Interne Revision In Verbundgruppen Und Franchise Systemen Verbreitung Und Qualit T Der Internen Revision In Unternehmensnetzwerken
Authors: Hans Ulrich Westhausen
1st. Aufl. 2016 Edition
3658121963, 978-3658121969
