Question: a. UmbrellaAcademy3 , Inc. purchased another company StrangerThings4 , Corp. in its entirety for $165 million in cash (i.e., this is an M&A). Below is

a. UmbrellaAcademy3, Inc. purchased another company StrangerThings4, Corp. in its entirety for $165 million in cash (i.e., this is an M&A). Below is a list of the assets and liabilities that StrangerThings4 has (book values refer to how they appeared on StrangerThings4' Balance Sheet before the acquisition, while fair values are determined as a result of independent evaluation).

StrangerThings4 Assets and Liabilities:

Book Value Fair Value

  • Accounts Receivable: 35 30
  • PP&E 30* 35
  • Goodwill from prior acquisitions 45
  • Copyrights (internally developed) 70
  • Accounts Payable 18 18
  • Deferred Tax Liability 16 12

*BV of PP&E is comprised of Gross PP&E of 50 minus Accumulated Depreciation of 20

What assets does UmbrellaAcademy3 add to its Balance Sheet as a result of this M&A

Asset Name Amount

What liabilities does UmbrellaAcademy3 add to its Balance Sheet as a result of this M&A

Liability Name Amount

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