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Homework answers / question archive / Acquisition of Facebook by Amazon PP&E, Goodwill and Other Intangibles Assumptions Total Book Value of PP&E, Goodwill and Other Intangibles FMV of PP&E, Goodwill and Other Intangibles FMV of PP&E, Goodwill and Intangibles Attributed to Depreciable Property FMV of PP&E, Goodwill and Intangibles Attributed to Non-Depreciable Property Average Amortization Period (Years) $71,505 $766,981 71

Acquisition of Facebook by Amazon PP&E, Goodwill and Other Intangibles Assumptions Total Book Value of PP&E, Goodwill and Other Intangibles FMV of PP&E, Goodwill and Other Intangibles FMV of PP&E, Goodwill and Intangibles Attributed to Depreciable Property FMV of PP&E, Goodwill and Intangibles Attributed to Non-Depreciable Property Average Amortization Period (Years) $71,505 $766,981 71

Finance

Acquisition of Facebook by Amazon PP&E, Goodwill and Other Intangibles Assumptions Total Book Value of PP&E, Goodwill and Other Intangibles FMV of PP&E, Goodwill and Other Intangibles FMV of PP&E, Goodwill and Intangibles Attributed to Depreciable Property FMV of PP&E, Goodwill and Intangibles Attributed to Non-Depreciable Property Average Amortization Period (Years) $71,505 $766,981 71.50% 28.50% 13.5 Years Debt Assumptions Debt issued for acquisition of Facebook Interest on New Debt Term of New Debt New Debt Financing Fees $187,038 4.0% 10 Years 0.5% Other Assumptions Other Transaction Costs Effective Tax Rate Amazon Net Earnings Facebook Net Earnings $20 30.0% $23,688 $30,133 14 Additional annual interest expense due to new debt issued in relation to the transaction is: $7,482 $9,393 ???? $38,393 $8,383

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Annual Interest expense

= Debt issued to acquire fb * Interest on debt

= 187,038 * 4%
= $ 7,482

Option (a)