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Access the investor relations link and find the annual report from the year of the merger and from the previous and subsequent years. If it is not there, go to the SEC's website at www.sec.gov. Do not use financial statements from Yahoo!, Google, or any other site.Answer the following using the financial statements in the year after your merger closed:
Problem 1.) What form of business combination brought the two companies together, and what was the resulting corporate structure? How did the firms account for the acquisition? How did the firms account for its acquisition-related expenses? Was there any contingent consideration? If so, how much?
Problem 2.) What was the cost of the merger? How was that cost allocated (What allocations were made to the assets acquired and liabilities assumed in the acquisition)? Was goodwill recorded? If so, how much? If not, was it considered a bargain purchase? Provide a calculation showing how the acquirer determined the amount allocated to goodwill or bargain purchase.
Problem 3.) Was there in-process research and development acquired in the combination? If so, how did the firms account for it? Were other intangible assets acquired in the combination? What were they and how did the firms account for them?
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