Case 1-2 (1).pdf X file:///C:/Users/Ahmed.Almanfi/Desktop/Case%201-2620(1).pdf ... Operating cash flows will increase at the rate of 10% per year for the next four fiscal Cash flows , defined as net of cash from operations less ca discounted at an after rate of return for fare of 12%. An annual rate of 12% is a reason- Added capital expenditures will be $100,000 in year 5, $120,000 in year 10, and $130,000 in year 15. An estimate of salvage value (net of the tax effect of gains or losses) of the assets after 20 years is estima Case 1-2 (1).pdf x + v timated to be $300. X the unit may be operated after that period. 00. This is a conservative assumption since On file://C:/Users/Ahmed.Almanfi/Desktop/Case%201-2620(1).pdf Required 1. Prepare a schedule of net of-tax cash flows for Frontier and discount them to present value. * H LE... Compare the estimated fair value of the reporting unit with amounts assigned to identifiable assets plus goodwill less liabilities, Herbook value offrontier company including goodwil . $1,300,000 3. Record the acquisition. analysis discounted at a 12% annual rod procedure. Part C. Revisit the information in Part A that illustrates the reporting unit valuation stimated fair value of identifiable net assets using methods 1,200,000 goodwill ... 1,020,000 Assume that by fiscal year-end, December 31, 2015, events occur that suggest good- have the following information. These new estimates are made Required Has goodwill been impaired? Perform the impairment testing procedure. If goodwill has at the end of the first year: been impaired, calcul ate the adjustment to goodwill and make the needed entry. wowon value of frontier Company including goodwill . $1,300,000 Case 1-2 analysis discounted at a 12% annual rate." Disney Acquires Marvel Entertainment Estimated fair value of identifiable net assets using methods excluding 1,200,000 On December 31, 2009, The Walt Disney Company acquired all the capital stock of goodwill .. 1,020,000 Marvel Entertainment Company. Marvel has created heroes such as Spiderman, the Hulk Required been impaired, calculate the adjustment to goodwill and make the ne Disney acquired 79.2 million shares of Marvel Entertainment's shares. Disney issued lion shares of Disney stock plus $30 for each share of Marvel Entertainment stock. Disney stock, which has a par value of $0.01 per share, had a market value of $32.25 per Case 1-2 Disney Acquires Marvel Entertainment share. The estimated fair value of Marvel Entertainment accounts were as follows: Cash and cash eqivalents Receivables 105,000,000 On December 31, 2009, The Walt Disney Company acquired all the capital stock of Capitalized film costs and Iron Man. Marvel Entertainment Company. Marvel has created heroes such as Spiderman, the Hulk, 41.060.060 Intangible assets Accounts payable 3,140,000,000 Disney acquired 79.2 million shares of Marvel Entertainment's shares. Disney issued 59 million shares of Disney stock plus $30 for each share of Marvel Entertainment stock. Other liabilities. (325,060,000) Disney stock, which has a par value of $0.01 per share, had a market value of $32.25 per Deferred income tax liability (1, 121,000,000) share. The estimated fair value of Marvel Entertainment accounts were as follows: Cash and cash eqivalents Receivables 105,000,000 Capitalized film cost 141,000,000 Required 1. Using the Federal Trade Co Intangible assets 269,000,000 would you classify 3, 140,000,000 Calculate the to Accounts payable looo'ooo'szel 3. Record the acquisition. dwill or a gain? Other liabilities* Deferred income tax liability (83,000,000) (1,121,000,000) Required 1. Using the Federal Trade Con the acquisition? would you classify 2. Calculate the total price paid for Marvel 3. Record the acquisition, dwill or a gain? # 9 0 e 9 5 W x
