In February 2010, Abbott Laboratories acquired Solvay Pharmaceuticals in exchange for $6.1 billion in cash plus contingent consideration. Referring to Abbott's 2010 financial statements, answer the following questions related to Abbott's acquisition of Solvay Pharmaceuticals.
1. Why did Abbott acquire Solvay Pharmaceuticals?
2. What policies did Abbott follow in accounting for the acquisition?
3. What allocations did Abbott make to the assets acquired and liabilities assumed in the acquisition? Provide a calculation showing how Abbott determined the amount allocated to goodwill.
4. How did Abbott account for the contingent consideration portion of the deal?
5. How did Abbott account for the in-process research and development acquired in the combination?
6. How did Abbott account for its acquisition-related expenses?