Question

Please perform your own research regarding the Kmart/Sears merger and answer the following questions:

a. What major event for Kmart occurred in 2002? How was that issue resolved?

b. What form of business combination brought Sears and Kmart together, and what was the resulting corporate structure?

c. In the business combination involving Sears and Kmart, which company acquired the other? On what basis was this determination made? What accounting implications did the choice of acquirer have?

d. Perform some internet research and comment on how successfully or unsuccessfully the merger of the two companies has been viewed.