Required information
On May Donovan Company reported the following account balances:
On May Beasley paid $ in stock fair value for all of the assets and liabilities of Donovan, which will cease to
exist as a separate entity. In connection with the merger, Beasley incurred $ in accounts payable for legal and
accounting fees.
Beasley also agreed to pay $ to the former owners of Donovan contingent on meeting certain revenue goals
during the following year. Beasley estimated the present value of its probability adjusted expected payment for the
contingency at $ In determining its offer, Beasley noted the following:
Donovan holds a building with a fair value $ more than its book value.
Donovan has developed unpatented technology appraised at $ although is it not recorded in its financial
records.
Donovan has a research and development activity in process with an appraised fair value of $ The project has
not yet reached technological feasibility.
Book values for Donovan's current assets and liabilities approximate fair values.
How much should Beasley record as total assets acquired in the Donovan merger?
