Calculate a targets deferred tax liability given the following details. Please show all work Equity purchase...
Calculate a targets deferred tax liability given the following details. Please show all work
Equity purchase price: $6,600.0 million
Tangible asset write-up: $100.0 million
Intangible asset write-up: $50.0 million
Total asset write-up: $150.0 million
Goodwill created: $600.0 million
Tax rate: 38%
Homework Answers
Tangible asset write up = $100 million
Intangible Asset write up = $50 million
Tax rate = 38%
Deferred tax liability = - ( Tangible asset write- up + Intangible asset write-up) * 38%
= - ( $100 million + $50 million ) * 38%
= - ( $150 million ) * 38%
= - $57 million
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Calculate a targets deferred tax liability given the following
details. Please show all work
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interest in earning / Average Total Assets
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