Great Deal! Get Instant $10 FREE in Account on First Order + 10% Cashback on Every Order Order Now

From the partial information presented in the case pertaining to the closing of the deal (information in case Exhibit 3), what accounting entry was possibly made by Facebook to record the WhatsApp...

1 answer below »

From the partial information presented in the case pertaining to the closing of the deal

(information in case Exhibit 3), what accounting entry was possibly made by Facebook

to record the WhatsApp acquisition?

Answered 11 days After May 13, 2022

Solution

Nitish Lath answered on May 24 2022
90 Votes
When Facebook has made acquisition of the WhatsApp then the entity has recorded in the books of accounts the fair value of all the assets either tangible or any identified intangible assets and it has also recorded the liabilities that are being assumed by the new owner. When the purchase price is at par with the fair value then the amount will be recorded as per the fair value. Although, most of the acquisition of the entity are made for increasing the value of the new or combined entity and thus the purchase price paid for the acquisition is always more than the fair value of...
SOLUTION.PDF
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here
Attach File