Question
Consolidation Eliminating Entries In July 2019, IBM Corporation acquired all of the outstanding stock of Red Hat Software, a provider of open-source and cloud technologies.
Consolidation Eliminating Entries In July 2019, IBM Corporation acquired all of the outstanding stock of Red Hat Software, a provider of open-source and cloud technologies. Cash paid for outstanding Red Hat stock totaled $80,042 million. In addition, stock-based compensation awards attributable to pre-combination services had a fair value of $400 million, and stock issued to holders of vested performance share units were valued at $242 million. Acquisition-related legal and advisory fees of $435 million were paid in cash. Compensation related to employee retention plans for the period following the acquisition, paid in cash in 2019, totaled $529 million. An estimated $426 million associated with these retention plans remains to be paid in future years. Red
Note: Provide all answers in millions. a. Prepare IBM's journal entry or entries to record the stock acquisition on its own books. Consolidation Eliminating Entries these retention plans remains to be paid in future years. Red Hat's balance sheet at the date of acquisition, plus fair value information, are as follows (in millions): Required Note: Provide all answers in millions. Note: Provide all answers in millions. a. Prepare IBM's journal entry or entries to record the stock acquisition on its own books. Consolidation Eliminating Entries these retention plans remains to be paid in future years. Red Hat's balance sheet at the date of acquisition, plus fair value information, are as follows (in millions): Required Note: Provide all answers in millionsStep by Step Solution
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