The project is a study of the Merger between United Airlines and Continental Airlines. There are five questions related to the merger. Although the merger was initiated in 2010 many issues still exist today in 2019 related to that merger.

Number 1-5 Number each of your answers to correspond with the questions below:

1. How was the merger between United and Continental structured? Which airlines is the survivor? Who holds what stock after the merger?

2. What accounting method was used to account for the merger of Continental and United? What are the reporting implications of the chosen accounting method?

3. What items of value did Continental bring to the merger that will not be recorded in the acquisition?

4. How will the items of value that Continental brought to the merger in #4 affect future reported income for the combined firm?

5. In your opinion was this a successful merger? Which company do you think gained the most benefit?