Acquisition Assumptions
Acquisition of Facebook by Amazon
PP&E, Goodwill and Other Intangibles Assumptions
Total Book Value of PP&E, Goodwill and Other Intangibles					$71,505
FMV of PP&E, Goodwill and Other Intangibles					$766,981
FMV of PP&E, Goodwill and Intangibles Attributed to Depreciable Property					71.50%
FMV of PP&E, Goodwill and Intangibles Attributed to Non-Depreciable Property					28.50%
Average Amortization Period (Years)					13.5 Years
Debt Assumptions
Debt issued for acquisition of Facebook					$187,038
Interest on New Debt					4.0%
Term of New Debt					10 Years
New Debt Financing Fees					0.5%
Other Assumptions
Other Transaction Costs					$20
Effective Tax Rate					30.0%
Amazon Net Earnings					$23,688
Facebook Net Earnings					$30,133

The incremental annual depreciation expense as a result of Amazons acquisition of Facebook, is expected to be:

1) $36,847

2) Nil - Amazon will obtain Facebooks PP&E, Goodwill, and Other Intangibles at Book Value

3) $51,533

4) $49,383