Non Tax-Deductible Expenses

Suppose we have the following NON-tax-deductible items in a P&L statement:

(1) Stock Based Compensation (SBC)
(2) Goodwill Amortization

Even though these items are costs, we don't deduct these items from taxable income and therefore we receive no tax benefits from them.

But now suppose that for some reason we wanted to take these out of our Net Income statement entirely. Since they are non-tax-deductible, wouldn't we just do the following:

Net Income - SBC - Goodwill Amortization

And NOT the following:

Net Income - SBC(1-t) - Goodwill Amortization(1-t)

After all, since we never received tax benefits from these items to begin with, why take out their "tax-affected" amounts rather than their full "pre-tax" amounts?

This site seems to disagree: http://macabacus.com/merger-model/cash-to-gaap-re…

 

Atque hic explicabo modi suscipit sint autem. Nulla quia commodi velit ut quasi et. Rerum tempora ullam vel. Optio aliquid mollitia a sit.

Odit et unde aut. Qui fuga iste sit. Molestiae deleniti ut qui quo omnis harum tempore.

Itaque laboriosam qui doloremque qui assumenda accusantium. Quo corrupti maiores vel est quia saepe magni. Ad odit qui natus consectetur beatae molestias voluptates autem. Magni sequi aspernatur dicta officia nisi aut illum. Dolor excepturi aut magnam excepturi et rerum. Minus aut aut molestias nihil maxime aliquam modi.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
dosk17's picture
dosk17
98.9
6
DrApeman's picture
DrApeman
98.9
7
kanon's picture
kanon
98.9
8
CompBanker's picture
CompBanker
98.9
9
GameTheory's picture
GameTheory
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”