Read: Facebooks acquisition of WhatsApp - the rise of intangibles (A), 2017 (Haskins, UVA). Homework is due October 13 (20 points). Questions: 1. What strategic motives were perhaps fueling Facebook's interest in acquiring WhatsApp? 2. What is or is not in WhatsApp's 2013 year-end financial statements that would have been appealing to a prospective acquirer? 3. How might the $19 billion purchase price have been derived? 4. Given the information in Exhibit 3 of the case, what summary accounting entry was possibly made on Facebook's books to record he WhatsApp deal's closing using the amount entered into the additional paid in capital (APIC) account as the amount (i.e. the plug) to make the entry balance? 5. Calculate the DuPont ratios for Facebook as of the end of 2013 and 2014. What performance challenges emerge from the comparison and what sorts of actions by Facebook management might address those challenges? 6. How will the intangible assets that Facebook acquired in the WhatsApp deal be accounted for in the financial statements going forward