all the requirements on the photos. Thank you

8:15 q < Back Business Combination Case.... ACC 675 Case I Fall 2019 On January 21, 2019, Purchaser Company completed the purchase and took control of Acquired Company for a cash purchase price of $10,000,000. You are assigned the responsibility for determining the appropriate allocation of the purchase price to determine the valuation of the acquired assets and liabilities and the recognition of any goodwill. The following page reports the most recent pre-acquisition balance sheet of the company. You have gathered the following information regarding Purchaser's motivation for the acquisition and its post-acquisition plans as well as additional information concerning Acquired Company: l. Acquired Company was a competitor firm in the same industry as Purchaser. Acquired Company had developed two brands (both trademarked) of products that competed well against Purchaser's product lines. Purchaser plans to phase out the production and marketing of one of the brands and develop the second brand into a market segment that would not directly compete against Purchaser's products. 2. Acquired Company is the lessee on a warehouse that it has been accounting for as an operating lease. Purchaser will continue as the lessee. 3. Acquired Company has a backlog of unfilled orders for the products under the brand Purchaser plans to continue. 4. Acquired Company has in-process research and development activities directed toward the product line of the brand Purchaser plans to continue. 5. The deferred tax asset recognized by Acquired Company relates to operating losses the company is allowed to carry forward. Purchaser Company will be able to utilize the loss carryforwards on its post- acquisition consolidated tax returns. 6. Eight years ago, Acquired Company hired a new CEO under a 10-year contract. The contract required Acquired to pay the CEO $1 million if Acquired was purchased by another entity before the contract expired. The CEO is still employed at the acquisition date and will receive the additional payment under the existing contract. 7. Purchaser Company does not plan on sell off any of Acquirer's production assets but will either use them to expand production of the surviving brand's products or convert them for production of Purchaser's products. Dashboard Calendar Notifications Inbox