Dwieght Ace A.

Gerona BSA A31

Accounting for Business Combination

Acquirer: Fender

The Fender Musical Instruments Corporation (FMIC, or simply Fender) is an American

manufacturer and marketer of musical instruments and amplifiers. Founded by Clarence
Leonidas Fender on 1946, Fender produces acoustic guitars, bass amplifiers and public address
equipment; however, it is best known for its solid-body electric guitars and bass guitars.

Acquiree: Columbia Broadcasting System

CBS Broadcasting Inc. is an American commercial broadcast television and radio network,
serving as the flagship property of the CBS Entertainment Group division of Paramount Global.

Date of Acquisition: January 1965

Type of Acquisition:

Net Asset - In January 1965, Leo Fender sold his companies to the Columbia Broadcasting System
(CBS) for $13 million ($121 million in 2022 adjusted for inflation)

Reason for Business Combination:

Fender contracted a streptococcal sinus infection that impaired his health to the point
where he decided to wind up his business affairs, selling the Fender company to CBS in 1965