Homework Answers
| b) | ||
| Computation of goodwill on acquisition of Ciber Inc | ||
| Cost of Acquisition | $ 80,000 | |
| Less; Net worth | ||
| Total Assets at Fair Value | ||
| Current Assets | $ 250 | |
| Plant and Equipment | $ 5,000 | |
| Licenses and Trademark | $ 8,000 | |
| $ 13,250 | ||
| Less; Liabilities at fair value | ||
| Current Liabilities | $ 800 | |
| Long term liabilities | $ 9,500 | |
| $ 10,300 | $ 2,950 | |
| Goodwill | $ 77,050 | |
| Goodwill attributed to unreported intangibles | ||
| Customer Contracts | $ 2,000 | |
| Brand names | $ 3,000 | |
| Leases at rents below current market | $ 500 | |
| Developed technology | $ 200 | |
| In-proceeds research and development | $ 1,000 | $ 6,700 |
| New Goodwill from acquisition | $ 70,350 | |
| Goodwill to be reported | $ 70,350 | |
| 1. Journal entries in the books of Brightcove | ||
| Account Title | Debit | Credit |
| Current Assets | $ 250 | |
| Plant and Equipment | $ 5,000 | |
| Licenses and Trademark | $ 8,000 | |
| Customer Contracts | $ 2,000 | |
| Brand names | $ 3,000 | |
| Leases at rents below current market | $ 500 | |
| Developed technology | $ 200 | |
| In-proceeds research and development | $ 1,000 | |
| Goodwill | $ 70,350 | |
| Current Liabilities | $ 800 | |
| Long term liabilities | $ 9,500 | |
| Cash | $ 80,000 | |
| (Being assets of Ciber recorded in the books of Brightcove) |
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E Business Cone :: My Subscriptions b. Calculate the goodwill to be reported for this acquisition....
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