Question
Allocating Purchase Price Adobe Systems Inc. reports the following footnote to its 10-K report. Fotolia On January 27, 2015, we completed our acquisition of privately
Allocating Purchase Price Adobe Systems Inc. reports the following footnote to its 10-K report. Fotolia On January 27, 2015, we completed our acquisition of privately held Fotolia, a leading marketplace for royalty-free photos, images, graphics and HD videos. During the first quarter of fiscal 2015, we began integrating Fotolia into our Digital Media reportable segment. Under the acquisition method of accounting, the total final purchase price was allocated to Fotolias net tangible and intangible assets based upon their estimated fair values as of January 27, 2015. The total final purchase price for Fotolia was $854.1 million of which $786.4 million was allocated to goodwill that was nondeductible for tax purposes, $227.7 million to identifiable intangible assets and $142.0 million to net liabilities assumed. a. Of the total assets acquired, what portion is allocated to net intangible assets? Round answer to one decimal place (ex: 0.2345 = 23.5%) What portion was allocated to tangible assets such as inventory and PPE?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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