Recording a Business Combination

VMware, Inc. is a subsidiary of Dell Technologies Inc., providing customers with IT resource management. In fiscal 2020, VMware acquired Avi Networks, Inc., a provider of multi-cloud application delivery services, for $436 million. This price reflected goodwill of $296 million and identifiable intangible assets of $122 million. Assume that VMware paid the acquisition price in cash, and also incurred $13 million in acquisition-related legal and advisory services, paid in cash.

Required

Note: Provide all answers in millions.

a. What was the fair value of tangible net assets, if any, that VMware recognized at the date of acquisition?

b. Prepare the journal entry to record this business combination