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Question: Prior to 2018, Celgene Corporation, a


Prior to 2018, Celgene Corporation, a biopharmaceutical company (with specialities in oncology, inflammation, and immunology) had owned a 9.6 percent equity interest in Juno Therapeutics Inc. (Juno). Juno is a scientific and manufacturing company specializing in the development of cancer therapies. On March 6, 2018, Celgene acquired the remaining 90.4 percent of Juno, resulting in Juno becoming a wholly owned subsidiary of Celgene.
Access Celgene’s 2018 10-K annual report, and answer the following:
1. What amounts and components did Celgene identify to determine the total consideration for the acquisition of Juno?
2. How did Celgene allocate the acquisition-date fair value of Juno among the assets acquired and liabilities assumed? What was the largest asset recognized in the Juno acquisition, and how was its fair value determined.
3. Upon acquisition of its controlling interest on March 6, 2018, how did Celgene account for the change in fair value of its original 9.6 percent ownership interest in Juno? How was this amount reported in the consolidated financial statements?
4. How did Celgene account for the precombination equity compensation provided by Juno’s employees? How did Celgene account for the postcombination equity compensation provided by Juno’s employees?

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