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UT Problem 2-32 (LO 2-4,2-5, 2-6b, 2-8) SafeData Corporation has the following account balances and respective fair values on June 30 Receivables Patented technology Customer

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UT Problem 2-32 (LO 2-4,2-5, 2-6b, 2-8) SafeData Corporation has the following account balances and respective fair values on June 30 Receivables Patented technology Customer relationships In-process research and development Liabilities Common stock Additional paldin Capital Retained earnings deficit, 1/1 Book Values Fair Values $ 105,00 $ 106,000 192,000 192.00 484.ee 324,00 (472,000) (472.000) (100,000) (308,000) 676,000 (410.699) 308, Privacy First, Inc., obtained all of the outstanding shares of SafeData on June 30 by issuing 20,000 shares of common stock having a Si par value but a $50 fair value. Privacy First incurred $10,000 in stock issuance costs and paid $50,000 to an investment banking firm for its assistance in arranging the combination. In negotiating the final terms of the deal, Privacy First also agrees to pay $75,000 to SafeData's former owners if it achieves certain revenue goals in the next two years. Privacy First estimates the probability adjusted present value of this contingent performance obligation at $22.500 a. What is the fair value of the consideration transferred in this combination? b. How should the stock issuance costs appear in Privacy First's postcombination financial statements? c. How should Privacy First account for the fee paid to the investment bank? d. How does the issuance of these shares affect the stockholders equity accounts of Privacy First, the parent? e. How is the fair value of the consideration transferred in the combination allocated among the assets acquired and the abilities assumed? h. If Privacy First's stock had been worth only $25 per share rather than $50, how would the consolidation of SafeData's assets and liabilities have been affected? Answer is not complete Complete this question by entering your answers in the tabs below.

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