FireEye describes the identifiable intangible assets acquired as follows: Content intangibles represent threat intelligence, which is continually
Question:
FireEye describes the identifiable intangible assets acquired as follows: Content intangibles represent threat intelligence, which is continually gathered from ongoing monitoring of endpoints and by incident response and remediation teams.
The intangible assets attributable to customer relationships relate to Mandiant’s ability to sell existing, in-process and future versions of its products and services to its existing customers.
Developed technology intangibles includes a combination of patented and unpatented technology, trade secrets, and computer software and process that represent the foundation for planned new products and services. FireEye plans to amortize the developed technology over 4–6 years, the content intangibles over 10 years, customer relationships over 8 years, contract backlog over 1–3 years, and trade names over 4 years. Inprocess research and development has an indefinite life.
Required
Calculate the total acquisition cost reported by FireEye. Enter answer in thousands (ex: $8,500,000 equals $8,500 in thousands).
How much goodwill was recognized for this acquisition? Enter answer in thousands (ex: $8,500,000 equals $8,500 in thousands).
Prepare the journal entry FireEye would make if it recorded the combination as a merger. Round all numbers to the nearest thousand. Enter answers in thousands. Round answers to the nearest thousand, if applicable (ex: $6,436 equals $6 in thousands - rounded).
Advanced Accounting
ISBN: 978-1934319307
2nd edition
Authors: Susan S. Hamlen, Ronald J. Huefner, James A. Largay III