Brightcove, Inc. acquires all of the stock of Ciber, Inc. for $62.5 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 Fair Value Book Value Dr (Cr) Current assets Plant and $87,500 equipment, net Licenses Dr (Cr) Dr (Cr) $500 $375 250,000 15,000 5,000 and trademarks 6,250 8,750 Investment in Ciber 62,500 Current liabilities (100,000) (1,000) (1,000) Long-term liabilities (187,500) (12,500) (13,750) Capital stock (43,750) (10,000) Retained earnings (68,750) 1,750 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 $1,250 Assembled workforce 25,000 Brand names 6,250 Leases at rents below current market 500 Developed technology 1,875 In-process research and development 375 Future cost savings from elimination of duplicate assets 1,000 Additional expected revenues from bundling products 750 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. Enter answers in thousands. Acquisition cost Ciber book value Excess of acquisition cost over book value Excess of fair value over book value: Current assets Plant and equipment, net Licenses and trademarks Long term liabilities Customer contracts Brand names +A $ $ $ Goodwill $ b. Prepare a working paper to consolidate the balance sheet accounts of Brightcove and Ciber at the date of acquisition. (all amounts in thousands) Use negative signs with your credit balance answers in the Consolidated Balances column. Consolidation Working Paper Credit Consolidated Balances Dr (Cr) (R) $ (R) Accounts Taken From Books Eliminations Brightcove Ciber (in thousands) Dr (Cr) Dr (Cr) Debit Current assets Plant and equipment net Licenses and trademarks Investment in Ciber $87,500 250,000 $500 15,000 6,250 (R) 62,500 -- Customer contracts Brand names 222222 (R) -- -- (R) (R) -- (R) -- (R) -- (R) (E) (R) Goodwill Current liabilities (100,000) Long-term liabilities (187,500) (1,000) (12,500) (R) Capital stock (43,750) (10,000) (E) Retained earnings Total (68,750) 1,750 (E) $ 0 $ 0 $ $ $ c. Prepare the consolidated balance sheet at the date of acquisition, in good form. (all amounts in thousands) Assets Current assets Brightcove, Inc. and Subsidiary Consolidated Balance Sheet Date of Acquisition $ Plant and equipment, net Licenses and trademarks Other identifiable intangible assets Goodwill Liabilities Current liabilities Long-term liabilities Total liabilities Stockholders equity Capital stock Retained earnings Total equity $ Total assets $ Total liabilities and equity $