More Related Content Similar to CPA Journal June 2014 (20) CPA Journal June 20141. JUNE 2014 / THE CPA JOURNAL64
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JUNE 2014 / THE CPA JOURNAL66
EXHIBIT 3
Financial Impact of Trade (in Thousands)
At Contract Cumulative
Signing Date Year 1 Year 2 Year 3 Totals
Cash Outlay — $1,000 $1,000 $1,000 $3,000
Prepaid Asset — $133 $133 $133 $400
Amortization Expense
Balance Sheet $400 $267 $134 — —
Prepaid Account
EXHIBIT 1
Financial Impact of Trade (in Thousands)
At Contract Cumulative
Signing Date Year 1 Year 2 Year 3 Totals
Cash Outlay — $1,000 $1,000 $1,000 $3,000
Prepaid Asset — $333 $333 $333 $1,000
AmortizationExpense
Balance Sheet $1,000 $667 $334 — —
Prepaid Account
EXHIBIT 2
Economic Benefits of the Transaction
Cost of goods and other services, at benchmark prices, to be acquired $ 4,000,000
Consideration given up for goods and services:
Cash component $ 3,000,000
Fair market value of inventory 400,000
Total consideration 3,400,000
Value and cash savings created $ 600,000