Question: Please answer the attached question step by step. Thank you. SwissPharm. acquired 100% of the Common Stock of USBio. on Sept 30, 2010 in exchange

Please answer the attached question step by step. Thank you. SwissPharm.

Please answer the attached question step by step. Thank you.

SwissPharm. acquired 100% of the Common Stock of USBio. on Sept 30, 2010 in exchange for shares of SwissPharm worth $1,600,000 (to USBio. Shareholders in exchange for their shares). - The pre-transaction balance sheet of each company is listed below. The fair value of USBio's land is $350,000 and the building is also $350,000. USBio has In Process R&D with a fair value of $370,000 and Drug Patents worth $640,000. 1. Given the above information, what is the amount of COGS reported by the merged firm under the acquisition method? Show your calculations below. 2. Given the above information, what is the level of Goodwill reported under the acquisition method? Show your calculations in the space below. 3. Assuming USBio's buildings had an average remaining life of 10 years when acquired, what is the $ effect of the Fair Value adjustment for buildings on consolidated EBIT in 2010? In 2011? Show your calculations below. 4. Assuming USBio's Drug patents have an average remaining life of 8 years when acquired, what is the $ effect of the In Process R&D on consolidated EBIT in 2010? In 2011? Show your calculations below

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