The following disclosure appeared in the annual re-port of GameStop Corp. for its fiscal year ended February

Question:

The following disclosure appeared in the annual re-port of GameStop Corp. for its fiscal year ended February 2, 2008 ("fiscal 2007"). All amounts are in thousands of dollars.
The company's showed of $1,403,907 at February 3, 2007 ("fiscal 2006").
Required
a. GameStop reported $8,083 in on its acquisition of Game Brands, Inc. Why does its fiscal 2006 show a balance of $1,403,907?
b. Based on the above disclosure, and assuming no impairments, acquisitions or divestitures involving , what is the balance at February 2, 2008?
c. The disclosure refers to "purchase price adjustments to reduce ." Identify the circumstances under which purchase price adjustments to reduce occur.
d. At the time of this acquisition, merger costs were included as acquisition costs, and treated in the same way as cash payments to the owners of the acquired company. If merger costs were treated as required by current U.S. GAAP, what would be the balance at February 2, 2008?
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