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IBM acquires SoftCloud Technologies for $1.20 billion in cash on February 15, 2021. At the acquisition date, the reported assets and liabilities of SoftCloud have
IBM acquires SoftCloud Technologies for $1.20 billion in cash on February 15, 2021. At the acquisition date, the reported assets and liabilities of SoftCloud have fair values as follows: (in millions) Fair Value Cash and receivables $400 Inventories 800 Property, plant, and equipment 3,500 Accounts payable 300 Long-term debt 3,850 In addition, the following items are not currently reported on SoftCloud's balance sheet: (in millions) Favorable lease agreements Skilled workforce Favorable press reviews on products Fair Value $150 15 5 Required Prepare the entry to record the business combination. Note: Show all numbers in millions. Debit Credit
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