Question
Allocating Purchase Price Including In-Process R&D Assume Adobe Systems, Inc., reports the following footnote to its 10-K report. During fiscal 2006, we completed the acquisition
Allocating Purchase Price Including In-Process R&D Assume Adobe Systems, Inc., reports the following footnote to its 10-K report. During fiscal 2006, we completed the acquisition of Macromedia, a provider of software technologies that enables the development of a wide range of Internet and mobile application solutions... The total $3.6 billion purchase price is allocated to the acquired net assets of Macromedia based on their estimated fair values as of December 3, 2005 and the associated estimated useful lives at that date:
(in $000) | Amount | Estimated Useful Life |
---|---|---|
Net tangiable assets | $ 773,164 | N/A |
Identifiable intangible assets | ||
Acquired product rights | 365,500 | 4 years |
Customer contracts and relationships | 183,800 | 6 years |
Non-competition | 500 | 2 years |
Trademarks | 130,700 | 5 years |
Goodwill | 1,993,898 | N/A |
Stock-based compensation | 150,951 | 2.18 years |
Total purchase price | $ 3,598,513 |
(a) Of the total assets acquired, what portion is allocated to net tangible assets? (Round your answer to the nearest whole percent.) Net tangible assets = ?%
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