Question
Target Corporation's assets are acquired by Acquiring Corporation in exchange for $5,100,000 of cash to be paid to Target Corporation. The purchase agreement is dated
Target Corporation's assets are acquired by Acquiring Corporation in exchange for $5,100,000 of cash to be paid to Target Corporation. The purchase agreement is dated March 13, 2019.
Target Corporation's EIN is 23-372698674. Target Corporation's address is 3245 Industrial Blvd.,
McKinney, TX 75070. YOU REPRESENT TARGET (THE SELLER) AND WILL REPORT THE FORM ON BEHALF
OF THE SELLER.
Acquiring Corporation's EIN is 23-900653890. Acquiring Corporation's address is 9200 Bretton Lakes
Rd., Nashville, TN, 37209.
The contract lists the following assets and values assigned by the parties. The parties have agreed that they will follow the purchase price allocation as stated in the contract.
Asset
Assigned FMV
Cash
155,000
Inventory
810,000
Accounts
Receivable
355,000
Workforce in Place
320,000
Customer Lists
160,000
Copyrights
80,000
Equipment
725,000
Furnishings
85,000
Land
240,000
Building
860,000
In addition to the $5,100,000 paid to Target Corporation, Acquiring has also entered into a covenant not to compete with Jack Sparrow, the President of Target. Sparrow will be paid $900,000 for an agreement to not compete with Acquiring for a period of 30 months after the acquisition
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