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The following information applies to questions 34 and 5: Late in 2020, Adobe acquired a company called Workfront for cash payment of about $1.5 billion.

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The following information applies to questions 34 and 5: Late in 2020, Adobe acquired a company called Workfront for cash payment of about $1.5 billion. Access Adobe's financial statements here (the link takes you to Adobe's 10-Q filing for the first quarter of 2021). Adobe discusses accounting for the acquisition in Note 3 (on page 11 of the report). Required: What is the fair value of net assets acquired in this transaction? 460 million 1,105 million 419 million 41 million 1.524 million ADOBE INC. 100 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Unaudited) NOTE 3. ACQUISITIONS On December 7, 2020, we completed the acquisition or Workfront, a privately held company that provides a workflow platform, for approximately 51 52 billion of cash consideration. During the first quarter of fiscal 2021, we began integrating Workfront into our Digital Experience reportable segment The table below represents the preliminary purchase price allocation to total identifiable intangible assets acquired and net liabilities assumed based on their respective estimated fair values as of December 7, 2020. The fair values assigned to assets acquired and liabilities assumed are based on management's best estimates and assumptions as of the reporting date Fair values associated with the net tax liabilities assumed and their related impact to goodwill were pending finalization as of the reporting date Amon Useful Life Customer contracts and relationships 290 10 Purchased technology 3 Backlog 30 Trademarks 30 5 Total identifiable intangible assets 460 Net liabilities assumed (41) NA Goodwill 1.105 NA Total purchase price 1524 Non-deductible for tax-purposes NOTE 4. CASH, CASIL EQUIVALENTS AND SHORT-TERM INVESTMENTS Cash equivalents consist of highly liquid marketable debt securities with remaining maturities of three months or less at the date of purchase. We classify our investments in marketable debt securities as available for sale." We carry these investments at fir value, based on quoted market prices or other readily available market information. Unrealised gains and unrealized non-credit-related losses are included in accumulated other comprehensive income, net of taxes, in our condensed consolidated balance sheets. Unrealized credit-related losses are recorded to other income (expense). net in our condensed consolidated statements of income with a corresponding allowance for credit-related losses in our condensed consolidated balance sheets. Gains and losses are determined using the specific identification method and recognized when realized in out condensed consolidated statements of income The following information applies to questions 34 and 5: Late in 2020, Adobe acquired a company called Workfront for cash payment of about $1.5 billion. Access Adobe's financial statements here (the link takes you to Adobe's 10-Q filing for the first quarter of 2021). Adobe discusses accounting for the acquisition in Note 3 (on page 11 of the report). Required: What is the fair value of net assets acquired in this transaction? 460 million 1,105 million 419 million 41 million 1.524 million ADOBE INC. 100 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Unaudited) NOTE 3. ACQUISITIONS On December 7, 2020, we completed the acquisition or Workfront, a privately held company that provides a workflow platform, for approximately 51 52 billion of cash consideration. During the first quarter of fiscal 2021, we began integrating Workfront into our Digital Experience reportable segment The table below represents the preliminary purchase price allocation to total identifiable intangible assets acquired and net liabilities assumed based on their respective estimated fair values as of December 7, 2020. The fair values assigned to assets acquired and liabilities assumed are based on management's best estimates and assumptions as of the reporting date Fair values associated with the net tax liabilities assumed and their related impact to goodwill were pending finalization as of the reporting date Amon Useful Life Customer contracts and relationships 290 10 Purchased technology 3 Backlog 30 Trademarks 30 5 Total identifiable intangible assets 460 Net liabilities assumed (41) NA Goodwill 1.105 NA Total purchase price 1524 Non-deductible for tax-purposes NOTE 4. CASH, CASIL EQUIVALENTS AND SHORT-TERM INVESTMENTS Cash equivalents consist of highly liquid marketable debt securities with remaining maturities of three months or less at the date of purchase. We classify our investments in marketable debt securities as available for sale." We carry these investments at fir value, based on quoted market prices or other readily available market information. Unrealised gains and unrealized non-credit-related losses are included in accumulated other comprehensive income, net of taxes, in our condensed consolidated balance sheets. Unrealized credit-related losses are recorded to other income (expense). net in our condensed consolidated statements of income with a corresponding allowance for credit-related losses in our condensed consolidated balance sheets. Gains and losses are determined using the specific identification method and recognized when realized in out condensed consolidated statements of income

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