On February 25, 2009, Abbott Laboratories acquired 100 percent of the equity of Advanced Medical Optics Corporation in exchange for $1.4 billion cash. Referring to Abbott’s 2009 financial statements, answer the following:
1. How did Abbott account for the Advanced Medical Optics acquisition?
2. What allocations did Abbott make to the assets acquired and liabilities assumed in the acquisition?
Provide a calculation showing how Abbott determined the amount allocated to goodwill.
3. How will Abbott account for the in-process research and development acquired in the combination?
4. How will Abbott account for its acquisition-related expenses?
5. Why did Abbott acquire Advanced Medical Optics?

  • CreatedOctober 04, 2014
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