1 GAAP Codification of Accounting Standards, Codification Topic 805: Business Combinations
Prestone, Riles, & Nye Associates Prestone, Riles, & Nye (PRN) is a marketing communications company with offices throughout the US and a subsidiary in the United Kingdom and they want to expand into Eastern Europe. In their efforts to do so PRN entered an agreement to acquire outstanding stock of Broadwick Communications, Inc., a firm with contacts in Europe. Brodwick has three shareholders owning 25% each and eight owning the remaining 25%. PRN is responsible to pay $14 million to Broadwick shareholders and form a new entity, BPRN International, Inc. BPRN will conduct the