During 2005, eBay acquired four different companies. In the schedule below, the acquired companies are listed...
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During 2005, eBay acquired four different companies. In the schedule below, the acquired companies are listed with the aggregate purchase price and with the estimated acquisition-related costs (dollars in thousands). Acquired Company Rent.com International classified websites Shopping.com Skype Aggregate Purchase Price $435,365 81,584 685,285 2,593,426 Acquisition-related costs $2,000 1,300 7,600 Not reported eBay acquired various websites when it acquired International classified websites. The excess of the purchase price over the fair value of net tangible assets and identifiable intangible assets was $71,771 thousand (or approximately 88% of the purchase price). What does this amount represent, and why is this not unusual for an acquisition of this type? Save for Later B IUT₂ T' I E E J JE I 3 I 99 á ¶_¶¹ Attempts: 0 of 2 used O Word(s) Submit Answer During 2005, eBay acquired four different companies. In the schedule below, the acquired companies are listed with the aggregate purchase price and with the estimated acquisition-related costs (dollars in thousands). Acquired Company Rent.com International classified websites Shopping.com Skype Aggregate Purchase Price $435,365 81,584 685,285 2,593,426 Acquisition-related costs $2,000 1,300 7,600 Not reported eBay acquired various websites when it acquired International classified websites. The excess of the purchase price over the fair value of net tangible assets and identifiable intangible assets was $71,771 thousand (or approximately 88% of the purchase price). What does this amount represent, and why is this not unusual for an acquisition of this type? Save for Later B IUT₂ T' I E E J JE I 3 I 99 á ¶_¶¹ Attempts: 0 of 2 used O Word(s) Submit Answer
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Answer The amount of 71771 thousand represents goodwill arising from the acquisition Goodwill is an ... View the full answer
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