ition of WhatsApp should be account
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 1
Facebook Inc. bought WhatsApp Inc. for a total of $19 billion in cash and shares in October 2014. The Balance day of Facebook Inc. is 31 December.
Required
Indicate and explain how the acquisition of WhatsApp should be accounted in Facebook’s financial statements on the day of purchase and the following balance day periods. Hint: research about the WhatsApp Inc. acquisition by Facebook Inc.
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