E3.13 Pushdown Accounting (see related E3.12) Refer to the information in E3.12. Assume Ciber uses pushdown accounting as of the date of acquisition.

Required

a. Prepare the entry Ciber makes on its own books at the date of acquisition.

b. Prepare a working paper to consolidate the balance sheet accounts of Brightcove and Ciber at the date of acquisition.

c. Prepare the consolidated balance sheet at the date of acquisition, in good form. Compare the consolidated balance sheets in E3.12 and E3.13 and comment on the results.

Chapter 3 Consolidated Financial Statements: Date of Acquisition Brightcove, Inc. Ciber, Inc. Book Value Dr (Cr) Book Value Dr (Cr) Fair Value Dr (Cr) . $ 40,000 200,000 $ 400 12.000 5,000 $ 250 5,000 8,000 Current assets ...... Plant and equipment, net.... Licenses and trademarks Investment in Ciber. Current liabilities.. . Long-term liabilities ...... Capital stock ........ Retained earnings .. Tots 60,000 160,000 (150.000, 135,000 155,000 1800) (10.000) (8.000) 1.400 (BOC) (9,500) Brightcove hires a consultant to identify and value any previously unreported intangible assets attribut able to her at the date of acquisition. The consultant identifies the following intangibles: Fair Value (in thousands) Customer contracts... Assembled workforce...... Brand names ... . Lenses at onts below current marke Developed technology ..... In-process research and development ..... Future cost savings from em naton of duplcate assets... Additional expected revenues from bunding aroducts........ $ 2.000 25.000 3.000 500 200 1.000 400 800 Chapter 3 Consolidated Financial Statements: Date of Acquisition Brightcove, Inc. Ciber, Inc. Book Value Dr (Cr) Book Value Dr (Cr) Fair Value Dr (Cr) . $ 40,000 200,000 $ 400 12.000 5,000 $ 250 5,000 8,000 Current assets ...... Plant and equipment, net.... Licenses and trademarks Investment in Ciber. Current liabilities.. . Long-term liabilities ...... Capital stock ........ Retained earnings .. Tots 60,000 160,000 (150.000, 135,000 155,000 1800) (10.000) (8.000) 1.400 (BOC) (9,500) Brightcove hires a consultant to identify and value any previously unreported intangible assets attribut able to her at the date of acquisition. The consultant identifies the following intangibles: Fair Value (in thousands) Customer contracts... Assembled workforce...... Brand names ... . Lenses at onts below current marke Developed technology ..... In-process research and development ..... Future cost savings from em naton of duplcate assets... Additional expected revenues from bunding aroducts........ $ 2.000 25.000 3.000 500 200 1.000 400 800