Brightcove, Inc. acquires all of the stock of Ciber, Inc. for $50 million in cash and accounts for the acquisition as a stock acquisition. Balance sheet information at the date of acquisition is as follows (in thousands): Brightcove, Inc. Ciber, Inc.

Book Value Dr (Cr) Book Value Dr (Cr) Fair Value Dr (Cr)

Current assets $70,000 $400 $300

Plant and equipment, net 200,000 12,000 4,000

Licenses and trademarks - 5,000 7,000

Investment in Ciber 50,000 - -

Current liabilities (80,000) (800) (800)

Long-term liabilities (150,000) (10,000) (11,000)

Capital stock (35,000) (8,000)

Retained earnings (55,000) 1,400

Total $0 $0

Brightcove hires a consultant to identify and value any previously unreported intangible assets attributable to Ciber at the date of acquisition. The consultant identifies the following intangibles:

Fair Value (in thousands)

Customer contracts $1,000

Assembled workforce 20,000

Brand names 5,000

Leases at rents below current market 400

Developed technology 1,500

In-process research and development 300

Future cost savings from elimination of duplicate assets 800

Additional expected revenues from bundling products 600

a. Prepare a schedule of the excess of acquisition cost over Ciber's book value and its allocation to Ciber's identifiable net assets and goodwill. (all amounts in thousands) When appropriate, use negative signs with your excess of fair value over book value answers (left column only). Do not use negative signs in the right column.

b. Prepare a working paper to consolidate the balance sheet accounts of Brightcove and Ciber at the date of acquisition. (all amounts in thousands) HINT: Remember to use negative signs with your credit balance answers in the Consolidated Balances column.

c. Prepare the consolidated balance sheet at the date of acquisition, in good form. (all amounts in thousands)