Soft Bound Version for Advanced Accounting 13th Edition
Soft Bound Version for Advanced Accounting 13th Edition
13th Edition
ISBN: 9781260110579
Author: Hoyle
Publisher: McGraw Hill Education
Question
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Chapter 2, Problem 3DYS

1.

To determine

Explain the reason why Company C acquire Company R.

2.

To determine

Explain the accounting method used, and for which amount, to record the acquisition.

3.

To determine

Find the amount which Company C include in pre-combination service compensation in the total consideration transferred. Explain the support which is provided for this treatment in the Accounting Standards Codification (see ASC 805-30-30, paragraphs 9-13).

4.

To determine

Provide a calculation showing how Company C determined the amount allocated to goodwill.

5.

To determine

Describe the nature of the in-process research and development product rights acquired by Company C in its acquisition of Company R.

6.

To determine

Explain the way in which Company C account for the in-process research and development product rights acquired in the Company R combination.

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On August 27, 2015, Celgene Corporation acquired all of the outstanding stock of Receptos, Inc., in exchange for $7.6 billion in cash. Referring to Celgene's 2015 financial statements and its July 14, 2015, press release announcing the acquisition, answer the following questions regarding the Receptos acquisition. What accounting method was used, and for what amount, to record the acquisition?
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On August 27, 2015, Celgene Corporation acquired all of the outstanding stock of Receptos, Inc., in exchange for $7.6 billion in cash. Referring to Celgene's 2015 financial statements and its July 14, 2015, press release announcing the acquisition, answer the following questions regarding the Receptos acquisition. Why did Celgene acquire Recentos?

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Soft Bound Version for Advanced Accounting 13th Edition

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