8omenesko ConglomeraLe Co recenLly acqulred 1easedale CosmeLlcs Company Lhrough a Lender offer

for all Lhe common sLock of 1easedale CosmeLlc 1easedale sLock had been Lradlng on Lhe markeL aL $23
per share buL Lhe Lender offer was made aL $33 per share for all 2 mllllon of Lhe company's shares
1easedale has a book value of $17 per share aL Lhe Llme of Lhe acqulslLlon 8omenesko gave each
shareholder $10 ln cash onehalf of a share of 8omenesko common sLock (Lradlng aL $30 per share)
and oneLenLh of a share of an $8 preferred sLock noL prevlously lssued for each share owned
1easedale's condensed 8alance sheeL was as follows before Lhe acqulslLlon (ln Lhousands)
Cash $300
CLher currenL asseLs 3000
L 22000
lnLanglbles lncluslve of goodwlll 2300
Coodwlll 3000
1oLal AsseLs 32800

CurrenL LlablllLles 4000
enslon CbllgaLlon 3000
LongLerm debL 8000
ueferred 1axes 800
SLockholders' LqulLy 17000
1oLal LlablllLles and LqulLy 32800

8equlred
a WhaL are Lhe unlque problems Lhe audlLor musL address ln connecLlon wlLh 8omenesko's purchase of
1easedale CosmeLlcs?
b Pow should Lhe audlLor use a speclallsL ln valuaLlon of Lhe purchase LransacLlon?
c WhaL happens Lo Lhe goodwlll LhaL was on 1easedale's books? Lxplaln
d WhaL happens Lo Lhe oLher lnLanglbles LhaL were on 1easedale's 8ooks? Lxplaln
e WhaL happens Lo Lhe deferred lncome Lax llablllLy on 1easedale's books once Lhe purchase ls
compleLed?
f Assume LhaL Lhe cllenL uses a speclallsL who does noL change Lhe value asslgned Lo currenL asseLs or
llablllLles buL reduces Lhe penslon obllgaLlon o $13 mllllon and values Lhe L aL $30M and oLher
lnLanglbles aL $3M AddlLlonally Lhe currenL markeL value of 1easedale's longLerm debL ls $3M buL lLs
face value remalns aL $8M (also lLs maLurlLy value) WhaL ls Lhe amounL of goodwlll Lo be recorded?