Problem

On March 7, 2012, Celgene Corporation acquired all of the outstanding stock of Avila The...

On March 7, 2012, Celgene Corporation acquired all of the outstanding stock of Avila Therapeutics, Inc. in exchange for $352.2 million in cash plus contingent consideration. Referring to Celgene’s 2012 financial statements answer the following questions regarding the Avila Therapeutics acquisition.

What allocations did Celgene make to the assets acquired and liabilities assumed in the acquisition? Provide a calculation showing how Celgene determined the amount allocated to goodwill.

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