Answered step by step
Verified Expert Solution
Question
1 Approved Answer
6. [7%] In relation to question 2 above, shortly before the transaction closes, your client calls you and apprises you that she has heard from
6. [7%] In relation to question 2 above, shortly before the transaction closes, your client calls you and apprises you that she has heard from an individual who works as an appraiser with a small firm out of Hackensack, NJ. This individual told your client that he believes that by utilizing some innovative appraisal approaches that he has developed he should be able to come up with an appraisal of the assets your client is purchasing that will provide a significantly more favorable tax results by shifting the allocation of the purchase price among assets that will result in larger, and/or more accelerated tax deductions relating to the assets. Further, this individual told your client that his professional fee will be based on the tax savings his report will allow your client's company to claim on a present value basis. Your client thinks that this individual and his proposal are suspicious, but she notes that she is always interesting in saving money, including taxes, if there are legitimate grounds to do so. The well-established and well respected appraisers that both your client and Target II hired for this deal both immediately and strongly agree that the appraiser that contacted the CFO is technically wrong in regard to his comments about changing the appraisal of the assets. What is your advice to your client on whether she should consider the individual's offer
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started