Ch3cBW - IBM/DataFile Case Cash Price Paid Book Value of...

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IBM/DataFile Case Cash Price Paid 25,000,000 $ Book Value of Datafile 5,300,000 Price in Excess of Book 19,700,000 $ Difference Fair to Book: Fair Value Book Value Difference Current Assets 2,000,000 $ 2,300,000 $ (300,000) $ Plant and equipment, net 60,000,000 50,000,000 10,000,000 Patents and copyrights 5,000,000 1,000,000 4,000,000 Current Liabuilities (10,000,000) (10,000,000) - Long-term Debt (40,000,000) (38,000,000) (2,000,000) Book Value 5,300,000 $ Capitalized Indentifiable Intangibles: Brand names 1,000,000 1,000,000 Favorable lease agreements 600,000 600,000 Contractual customer relationships 3,000,000 3,000,000 16,300,000 Goodwill 3,400,000 $ Chapter 3c--1 AMIS 624 David E. Wallin copyright 2009 All Rights Reserved
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Exhibit 3.6 (in 000s) IBM Datafile Adjustments Consolidated Revenue Expenses Eq. in Net Inc. of Sub. Net Income/Loss Retained Earnings, beg. 16,000 2,800 Net Income/Loss Dividends Declared Retained Earnings, end 16,000 2,800 Current assets 15,000 2,300 Plant and equip., net 150,000 50,000 Patents/copyrights 3,000 1,000 Investment in Datafile 25,000 Brand names Fav. Lease Agree. Contact. Customer Goodwill Current Liabilities 15,000 10,000 Long-term debt 100,000 38,000 Common Stock 2,000 500 Additional PIC 60,000 2,000 Retained Earnings, end 16,000 2,800 193,000 193,000 53,300 53,300 Chapter 3c--2 AMIS 624 David E. Wallin copyright 2009 All Rights Reserved
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IBM/DataFile Case What if they paid only $20,000,000? Cash Price Paid 20,000,000 $ Book Value of Datafile 5,300,000 Price in Excess of Book 14,700,000 $ Difference Fair to Book: Fair Value Book Value Difference Current Assets 2,000,000 $ 2,300,000 $ (300,000) $ Plant and equipment, net 60,000,000 50,000,000 10,000,000 Patents and copyrights 5,000,000 1,000,000 4,000,000 Current Liabuilities (10,000,000) (10,000,000) - Long-term Debt (40,000,000) (38,000,000) (2,000,000) Book Value 5,300,000 $ Capitalized Indentifiable Intangibles: Brand names 1,000,000 1,000,000 Favorable lease agreements 600,000 600,000 Contractual customer relationships 3,000,000 3,000,000 16,300,000 Bargain Purchase Gain (1,600,000) $ Chapter 3c--3 AMIS 624 David E. Wallin copyright 2009 All Rights Reserved
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Exhibit 3.7 (in 000s) IBM Datafile Adjustments Consolidated Revenue Expenses Gain on bargain purch. 1,600 Eq. in Net Inc. of Sub. Net Income/Loss 1,600 Retained Earnings, beg. 16,000 2,800 Net Income/Loss 1,600 Dividends Declared Retained Earnings, end 17,600 2,800 Current assets 20,000 2,300 Plant and equip., net 150,000 50,000 Patents/copyrights 3,000 1,000 Investment in Datafile 21,600 Brand names Fav. Lease Agree. Contact. Customer Current Liabilities 15,000 10,000 Long-term debt 100,000 38,000 Common Stock 2,000 500 Additional PIC 60,000 2,000 Retained Earnings, end 17,600 2,800 194,600 194,600 53,300 53,300 Chapter 3c--4 AMIS 624 David E. Wallin copyright 2009 All Rights Reserved
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Exhibit 4.3 (Continuation of original case = $25,000,000 payment) Account Write-off Policy
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This note was uploaded on 08/06/2011 for the course AMIS 624 taught by Professor Wallin during the Summer '11 term at Ohio State.

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Ch3cBW - IBM/DataFile Case Cash Price Paid Book Value of...

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