Assuming Thermo Fisher would have been able to purchase the firm in a share for share exchange, what would have happened to the EPS in the first year? (In the form of payment section of the Acquirer Transaction Summary Worksheet, set the percentage of the payment denoted by “% Stock” to 100%. In the Sources and Uses Section, set excess cash, new common shares issued, and convertible preferred shares to zero.)
Danya company has created a new software application for PCs. Its costs during research and development were $250,000. Its costs after the working program was developed were $175,000. Although the companys copyright may be amortized over 40 years, management believes that the product will be viable for only 5 years. How should the costs be accounted for? At what value will the software appear on the balance sheet after 1 year?
Select a company and research its business. Search the Internet for articles about this company. Obtain its latest available annual report from the company’s website or from www.sec.gov. Click “Filings.” Then, use the link entitled “Company Filings Search.”