Question: Consider the data listed below and compute the consideration paid for the assets in the transaction pursuant to ASC 805. Assume the book value of
Consider the data listed below and compute the consideration paid for the assets in the transaction pursuant to ASC 805. Assume the book value of all liabilities assumed equals the fair value of those liabilites as of the transaction date. Cash Paid $200,000,000 Fair Value of Stock issued to effect the purchase transaction based on stock price on date of deal closing $293,040,000 Fair Value of Stock issued to effect the purchase transaction based on stock price on date of deal announcement $211,640,000 Fair Value of Earnout $48,970,000 Net Book Value of the Assets $204,000,000 Long-term Debt Assumed $77,000,000 Other Liabilities Assumed $34,000,000 Net Income $31,760,000 Value of replacement stock option awards attributable to precombination services $5,000,000 Value of replacement stock option awards attributable to postcombination services $7,000,000 Acquisition related costs $4,000,000 The computed total consideration paid for the assets in the transaction is
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