Consolidation with Previously Unrecorded Intangibles and Goodwill Brightcove, Inc. acquires all of the stock of Ciber, Inc, for $100 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 Book Value Fair Value Dr (Cr) Dr (Cr) Dr (Cr) Current assets $140,000 $800 5600 Plant and equipment, net 400.000 24,000 8,000 Licenses and trademarks 10,000 14,000 Investment in Ciber 100,000 Current liabilities (160,000) (1.600) (1.600) Long-term liabilities (300,000) (20,000) 22,000) Capital stock (70,000) (16,000) Retained earnings (110,000) 2,800 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: Customer contracts Assembled workforce Brand names Leases at rents below current market Developed technology In-process research and development Future cost savings from elimination of duplicate assets Additional expected revenues from bundling products Fair Value (in thousands) $2,000 40,000 10,000 B00 3,000 600 1,600 1,200 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. O o 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 o o o o o o o o 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. (in thousands) Current assets Plant and equipment net Licenses and trademarks Consolidation Working Paper Accounts Taken From Books Eliminations Brightcove Ciber Dr (Cr) Dr (Cr) Debit Credit $ 140,000 $800 400,000 24,000 10,000 (R) 0 100,000 Consolidated Balances Dr (Cr) 0 (R) $ 0 (R) Investment in Ciber 0 (E) 0 (R) Customer contracts Brand names oooo 0 0 0 0 Goodwill Current liabilities Long-term liabilities O (R) -- (R) (1,600) (20,000) (16,000) (E) 2,800 $0 (160,000) (300,000) (70,000) (110,000) $0 Capital stock Retained earnings 0 (E) 0 Total $ 0 $ $ c. Prepare the consolidated balance sheet at the date of acquisition, in good form. (all amounts in thousands) Brightcove, Inc. and Subsidiary Consolidated Balance Sheet Date of Acquisition Assets Liabilities Current assets 0 Current liabilities 0 Long-term liabilities 0 Total liabilities Plant and equipment, net Licenses and trademarks Other identifiable intangible assets Goodwill O Stockholders equity Capital stock Retained earnings Total equity 0 Total liabilities and equity $ 0010 Total assets