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Based on this schedule above, please calculate the Goodwill created in this deal. Assume a 25% tax rate. A B C D $1,020. $1,005. $980. $1,125.

Based on this schedule above, please calculate the Goodwill created in this deal. Assume a 25% tax rate. A B C D $1,020. $1,005. $980. $1,125.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 9MC
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Question 27 of 34 Consider the following Purchase Price Allocation schedule for this same M&A deal: Purchase Price Allocation: Goodwill Calculation: Equity Purchase Price: (-) Seller Book Value: (+) Write-Off of Existing Goodwill: Total Allocable Purchase Premium: (-) Write-Up of PP&E: (-) Write-Up of Intangibles: (-) Write-Down of Deferred Tax Liabilities: (+) New Deferred Tax Liability: Total Goodwill Created: A B C D $1,020. $1,005. $980. $ 2,000.0 (500.0) 100.0 $1,125. (40.0) Fixed Asset Write-Up: PP&E Write-Up %: PP&E Write-Up Amount: Depreciation Period (Years): Intangible Asset Write-Up: Purchase Price to Allocate: % Allocated to Indefinite-Lived Intangibles: Indefinite-Lived Intangibles: Based on this schedule above, please calculate the Goodwill created in this deal. Assume a 25% tax rate. % Allocated to Definite-Lived Intangibles: Intangibles Write-Up Amount: Amortization Period (Years): New Deferred Tax Liability: 10.0% $ 20.0 8 30.0% 5.0% 5
Transcribed Image Text:Question 27 of 34 Consider the following Purchase Price Allocation schedule for this same M&A deal: Purchase Price Allocation: Goodwill Calculation: Equity Purchase Price: (-) Seller Book Value: (+) Write-Off of Existing Goodwill: Total Allocable Purchase Premium: (-) Write-Up of PP&E: (-) Write-Up of Intangibles: (-) Write-Down of Deferred Tax Liabilities: (+) New Deferred Tax Liability: Total Goodwill Created: A B C D $1,020. $1,005. $980. $ 2,000.0 (500.0) 100.0 $1,125. (40.0) Fixed Asset Write-Up: PP&E Write-Up %: PP&E Write-Up Amount: Depreciation Period (Years): Intangible Asset Write-Up: Purchase Price to Allocate: % Allocated to Indefinite-Lived Intangibles: Indefinite-Lived Intangibles: Based on this schedule above, please calculate the Goodwill created in this deal. Assume a 25% tax rate. % Allocated to Definite-Lived Intangibles: Intangibles Write-Up Amount: Amortization Period (Years): New Deferred Tax Liability: 10.0% $ 20.0 8 30.0% 5.0% 5
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