On April 1, 2021, Peloton Interactive (Peloton) acquired Precor, Inc. Access Pelotons 2021 financial statements and media
Question:
On April 1, 2021, Peloton Interactive (Peloton) acquired Precor, Inc. Access Peloton’s 2021 financial statements and media reports near the time of the acquisition, and answer the following questions:
1. Why did Peloton acquire Precor?
2. How did Peloton account for the Precor acquisition?
3. What amount of goodwill did Peloton recognize in the combination? Prepare a schedule that computes the goodwill recognized in the acquisition as the difference between the consideration transferred for Precor and the fair values of the individually identified assets and liabilities acquired.
4. What were the acquisition-related costs Peloton incurred regarding the combination, and how were these costs accounted for?
5. How did Peloton report the Precor acquisition in its 2021 statement of cash flows?
Step by Step Answer:
Advanced Accounting
ISBN: 9781264798483
15th Edition
Authors: Joe Ben Hoyle, Thomas Schaefer And Timothy Doupnik