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Calculate the acquisition cost for KAYAK

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Reference no: EM132467675

Problem - 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 -

Q1. Calculate the acquisition cost for KAYAK. Calculate the amount of acquisition expense reported on priceline income statement in 2013

Q2. Calculate priceline net credit to additional paid-in-capital for this acquisition. Round amounts to the nearest thousand if necessary.

Q3. Calculate the amount of goodwill recoginized for this acquisition?

Reference no: EM132467675

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