Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 13 at the beginning of 2016, metatec inc acquired

13 At the beginning of 2016, Metatec Inc acquired Ellison Technology Corporation for $560 million....

70.2K

Verified Solution

Question

Accounting

image
image
13 At the beginning of 2016, Metatec Inc acquired Ellison Technology Corporation for $560 million. In addition to cash, recevables, and inventory, the following assets and their fair values were also acquired: Plant and equipment (deprec$146 million assets) Patent Goodwill 36 million 120 million The plant and equipment are depreciated over a 10 year useful life on a straight-line basis. There is no estimated residual value. The patent is estimated to have a 5-year useful life, no residual value, and is amortized using the straight-line methood At the end of 2018, a change in business climate indicated to management that the assets of Elison might be impaired. The following mounts have been determined Plant and equipment Undiscounted sum of future cash flows Fair value $76 million 56 million Patent: Undiscounted sum of future cash flows Fair value s 20 million 13 million Goodwil1: Fair value of Ellison Technology Corporation Fair value of Ellison's net assets (exc luding358 million goodwill) Book value of Ellison's net assets (including $406 million 43e million

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students