Allocating Purchase Price Capri Holdings, the parent company of Michael Kors and Jimmy Choo, reports the following footnote to its 10-K report dated March 3 1, 2019.

a. Of the total assets acquired, what portion is allocated to net intangible assets? What amount was allocated to tangible assets such as inventory and PPE?

b. Are Versace's assets and liabilities reported on the Capri Holdings consolidated balance sheet at the

book value or at the fair value on the date of the acquisition? Explain.

c. How are each of the intangible assets accounted for subsequent to the acquisition?

d. Describe the accounting for goodwill. Why is an impairment test difficult to apply?

On December 31, 2018, the Company completed the acquisition of Versace for a total enterprise value of approximately 1.753 billion (or approximately $2.005 billion). The following table summarizes the preliminary purchase price allocation of fair values of the assets acquired and liabilities assumed at the date of acquisition (in millions)