See the Future Corporation reported the following in its 2016 annual report regarding acquisition of Mountain Microchips:
Acquisition of Mountain Microchips, Inc.
On January31, 2016 we completed our acquisition of Mountain Microchips, Inc., a provider of hardware systems, software and services, by means of a merger of one of our wholly owned subsidiaries with and into Mountain such that Mountain became a wholly owned subsidiary of See the Future. We acquired Mountain to, among other things, expand our product offerings by adding Mountain's existing hardware systems business and broadening our software and services offerings. We have included the financial results of Mountain in our consolidated financial statements from the date of acquisition.
A. Of the total assets acquired, what portion is allocated to tangible assets and what portion to intangible assets?
B. Are Mountain's assets (both tangible and intangible) reported on the consolidated balance sheet at the book value or at the fair market value on the date of the acquisition? Explain.
C. Explain how the intangible assets are valued at the time of the acquisition.
D. How are the tangible and intangible assets accounted for subsequent to the acquisition?

Question

See the Future Corporation reported the following in its 2016 annual report regarding acquisition of Mountain Microchips:
Acquisition of Mountain Microchips, Inc.
On January31, 2016 we completed our acquisition of Mountain Microchips, Inc., a provider of hardware systems, software and services, by means of a merger of one of our wholly owned subsidiaries with and into Mountain such that Mountain became a wholly owned subsidiary of See the Future. We acquired Mountain to, among other things, expand our product offerings by adding Mountain's existing hardware systems business and broadening our software and services offerings. We have included the financial results of Mountain in our consolidated financial statements from the date of acquisition.
  A. Of the total assets acquired, what portion is allocated to tangible assets and what portion to intangible assets?
B. Are Mountain's assets (both tangible and intangible) reported on the consolidated balance sheet at the book value or at the fair market value on the date of the acquisition? Explain.
C. Explain how the intangible assets are valued at the time of the acquisition.
D. How are the tangible and intangible assets accounted for subsequent to the acquisition?

Quizplus · Accepted Answer

The Answer of See the Future Corporation reported the following in its 2016 annual report regarding acquisition of Mountain Microchips:
Acquisition of Mountain Microchips, Inc.
On January31, 2016 we completed our acquisition of Mountain Microchips, Inc., a provider of hardware systems, software and services, by means of a merger of one of our wholly owned subsidiaries with and into Mountain such that Mountain became a wholly owned subsidiary of See the Future. We acquired Mountain to, among other things, expand our product offerings by adding Mountain's existing hardware systems business and broadening our software and services offerings. We have included the financial results of Mountain in our consolidated financial statements from the date of acquisition.
  A. Of the total assets acquired, what portion is allocated to tangible assets and what portion to intangible assets?
B. Are Mountain's assets (both tangible and intangible) reported on the consolidated balance sheet at the book value or at the fair market value on the date of the acquisition? Explain.
C. Explain how the intangible assets are valued at the time of the acquisition.
D. How are the tangible and intangible assets accounted for subsequent to the acquisition?

See the Future Corporation Reported the Following in Its 2016