ANSWER IN YOU OWN WORDS!

Dont forget to provide references.

This is the full question.

Thank you.

64. Interpreting Acquisition Footnote with In-Process Research and Development On October 3, 2017, Gilead Sciences, Inc. (Gilead) acquired 100% of the outstanding common stock of Kite Pharma, Inc. (Kite). According to Gilead's December 31, 2017 Securities and Exchange Com- mission Form 10-K. "the acquisition of Kite was accounted for as a business combination using the acquisition method of accounting." The following excerpt is from Note 5 (i... Acquisitions) of Gilead's 2017 10 K: The following table summarizes the preliminary acquisition date fair values of assets acquired and liabilities assumed, and the consideration transferred fin milions): Cash and cash equivalents 652 Identifiable intangible assets Indefinite-lived intangible assets IPR&D 8.950 Outlicense acquired 91 Deferred income taxes (1,606) Other assets acquired liabilities assumed), net. Total identifiable net assets. 8.168 Goodwill 2.987 Total consideration transferred $11.955 81 What did Gilead need to demonstrate for the Kite acquisition to qualify as a business combination (In answering this question, ignore the information in part d of this problem.) b. Given the individual identifiable net assets acquired, describe why business combination accounting might seem unusual for the Kite acquisition. (In answering this question, ignore the information in part d of this problem.) c. For this question only, assume the Kite acquisition qualified as an asset acquisition that is not a business combination. How would the accounting for the acquisition of Kite's net assets differ? d. According to Gilead's 2017 10-K, in October 2017. after the acquisition date of Kite, the "FDA approved] Yescarta for the treatment of adult patients with relapsed or refractory DLBCL after two or more lines of systemic therapy." (This technology was technically considered unproven and presented as part of in-process research and development at the balance acquisition date.) The footnote states that the fair value of the technology for this proven Yescarta therapy is $6,200 million. If this technology was proven and patented, how will the above-presented information in the acquisition footnote change in the December 31, 2017 financial statements of Gilead