Refer to the information in E3.12. Assume Ciber uses pushdown accounting as of the date of acquisition.

Required

a). Prepare the entry Ciber makes on its own books at the date of acquisition.

b). Prepare a working paper to consolidate the balance sheet accounts of Bright cove and Ciber at the date of acquisition.

c). Prepare the consolidated balance sheet at the date of acquisition, in good form. Compare the consolidated balance sheets in E3.12 and E3.13 and comment on the results.

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Current assets Plant and equipment, net. Licenses and trademarks. Investment in Ciber Current liabilities... Long-term liabilities Capital stock Retained earnings Total Chapter 3 Consolidated Financial Statements: Date of Acquisition Customer contracts. Assembled workforce. Brightcove, Inc. Book Value Dr (Cr) $ 40,000 200,000 80,000 (80,000) (150,000) (35,000) (55,000) Ciber, Inc. Brand names... Leases at rents below current market Developed technology... In-process research and development Future cost savings from elim nation of duplicate assets Additional expected revenues from bunding products.. Book Value Dr (Cr) $ 400 12,000 5,000 (800) (10,000) (8,000) 1,400 Brightcove hires a consultant to identify and value any previously unreported intangible assets attribut- able to Ciber at the date of acquisition. The consultant identifies the following intangibles: Fair Value (in thousands) $ 2,000 25,000 3,000 Fair Value Dr (Cr) 500 200 1,000 400 800 $ 250 5,000 8,000 (800) (9,500) Current assets Plant and equipment, net. Licenses and trademarks. Investment in Ciber Current liabilities... Long-term liabilities Capital stock Retained earnings Total Chapter 3 Consolidated Financial Statements: Date of Acquisition Customer contracts. Assembled workforce. Brightcove, Inc. Book Value Dr (Cr) $ 40,000 200,000 80,000 (80,000) (150,000) (35,000) (55,000) Ciber, Inc. Brand names... Leases at rents below current market Developed technology... In-process research and development Future cost savings from elim nation of duplicate assets Additional expected revenues from bunding products.. Book Value Dr (Cr) $ 400 12,000 5,000 (800) (10,000) (8,000) 1,400 Brightcove hires a consultant to identify and value any previously unreported intangible assets attribut- able to Ciber at the date of acquisition. The consultant identifies the following intangibles: Fair Value (in thousands) $ 2,000 25,000 3,000 Fair Value Dr (Cr) 500 200 1,000 400 800 $ 250 5,000 8,000 (800) (9,500)

Answer rating: 100% (QA)

a Prepare the entry Ciber makes on its own books at the date of acquisition Answer a Acquisition cost 8000000 Ciber book value 660000 Excess of acquisition cost over book value 7340000 Excess of fair ... View the full answer