Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized. Inc. agreed to buy Quidsi Inc., the owner of and, for $500 million in cash, expanding in baby-care products and gaining merchandise- management expertise. Amazon will also assume about $45 million of closely held Quidsi’s debt and similar obligations, according to a statement from the companies today. They expect to close the deal in December.


  1. Based on the article, what were the sales for Quidsi last year?
  2. Based on the article, what was the U.S. e-commerce market last year?
  3. Based on the article, what percent of the U.S. e-commerce market does Quidsi comprise?
  4. Based on the information given in the article, discuss the accounting treatment  Amazon will record for the Quidsi acquisition.   


Galante, J. and Serena Saitto (2010). Agrees to Buy Owner for $500 Million,, November 8. (Retrievable online at