Search results
Results from the WOW.Com Content Network
Purchase price allocation (PPA) is an application of goodwill accounting whereby one company (the acquirer), when purchasing a second company (the target), allocates the purchase price into various assets and liabilities acquired from the transaction.
In order to calculate goodwill, the fair market value of identifiable assets and liabilities of the company acquired is deducted from the purchase price. For instance, if company A acquired 100% of company B, but paid more than the net market value of company B, a goodwill occurs.
Intangible business assets, like goodwill and intellectual property, are open to a wide range of value interpretations. ... (e.g., purchase price allocation) ...
For example, if you purchase a rental property for $500,000, you can depreciate the cost of the physical property. If the value of the land is $50,000, you can depreciate the remaining $450,000.
When the purchaser of an intangible asset is allowed to amortize the price of the asset as an expense for tax purposes, the value of the asset is enhanced by this tax amortization benefit. [1] Specifically, the fair market value of the asset is increased by the present value of the future tax savings derived from the tax amortization of the ...
Methodologies for allocating amortization to each accounting period are generally the same as those for depreciation. However, many intangible assets such as goodwill or certain brands may be deemed to have an indefinite useful life and are therefore not subject to amortization (although goodwill is subjected to an impairment test every year).
Donating to Goodwill is easy — but you may want to reconsider. Questionable business practices at this national thrift store make giving things away less appealing once you do some digging.
About two weeks ago my wife and I swallowed hard and bought a 500 gigabyte Apple (AAPL) TimeCapsule. The primary reason we purchased this combination hard-drive and WiFi base station was because ...