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Please assist with all parts A-C

 

In 2013, the online travel company priceline.com INC acquired

KAYAK Corporation, a travel meta-search website. Amounts paid related to the acquisition were as follows: (dollars in thousands)


Cash paid to former shareholder of KAYAK  521,443


Fair value of 1,522,000 shares of .08 par  1,282,334         

common stock issued to former shareholders of KAYAK


Fair value of assumed vested KAYAK stock options, related to  264,423         

pre-combination service


Fair value of unvested KAYAK stock options related to post- 57,400        

 combination service


Stock issuance cost 1,200


Professional consulting fees 8,500


The fair value of identifiable assets acquired and liabilities are listed below: 


Current assets 322,000


Trade names 496,000


Supply and distribution agreements  302,000


Technology 73,000


Other long-term assets 11,700


Deferred tax liabilities  -326,000


Other liabilities -42,800


Required:

A) Calculate the acquisition cost for KAYAK. Calculate the amount of acquisition expense reported on priceline.com's income statement in 2013

B) Calculate priceline.com's net credit to additional paid-in-capital for this acquisition. Round amounts to the nearest thousand if necessary. 

C) Calculate the amount of goodwill recoginized for this acqusition 

Top Answer

A) Acquistion cost = $2,020,500 Acquistion expense reported in income... View the full answer

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