So I know that in an asset sale you can write up your assets' tax basis, allowing tax savings in the future. Does this also apply to write-downs? For example, in an asset sale could your assets be written down, causing you to pay more taxes in the future?
Furthermore, in a stock sale, does an Asset-Write-down create a DTA, like a Write-Up creates a DTL?
| +93 | Restructuring is paradise (a completely unbiased account) | 6 | 6d |
| +47 | Not Treated Well by Other Interns | 23 | 11h |
| +31 | Best IB Group Overall? | 16 | 12h |
| +26 | Incoming freshman at a semi-target, what would you tell your younger self? | 10 | 15h |
| +19 | Still recruiting SA'27 | 11 | 2d |
| +19 | Help a Rising Sophomore at Non-Target | 6 | 1d |
| +18 | 1st Year Analyst in Investment Grade DCM - Advice needed | 1 | 13h |
| +17 | IB Recruiting in Singapore for European Citizens | 11 | 6h |
| +17 | Canadian Student Interested in London IB | 18 | 18h |
| +17 | What do you say to ppl who don’t know EVR/LAZ/CVP/PJT | 11 | 41m |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Hi Prospect in IB-M&A, any of these topics helpful:
More suggestions...
I hope those threads give you a bit more insight.
Don't think this is right. The whole idea of an asset purchase is that tax basis doesn't change - no goodwill and therefore no bargain sale. If you think about the accounting, you can't possibly have a gain and still have the BS balance unless you mark the asset above the price you purchased it (which you don't do in an asset sale)
To the OP second question, yeah DTL and DTA both can arise in an equity sale. DTA arising if you have an asset write down, although this will almost never happen
Suscipit eaque ab iure est sed molestiae sit. Soluta consequuntur voluptas eaque fuga rerum harum eos.
Ea iste rem id aut voluptatem. Aut tenetur ab inventore saepe similique numquam. Ullam ut blanditiis hic. Eos provident cum non reprehenderit voluptatum reiciendis et.
Tempora qui non voluptatum similique et sit repellendus. Dolor laborum et aperiam minima. Eveniet ratione nostrum sint quod ad. Molestias esse nulla et sed commodi itaque harum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...