Download the following excel file: Pro-Forma Adjustment Evaluation - Question.xlsx 13 Review Later The incremental annual depreciation expense as a result of Amazon's acquisition of Facebook, is expected to be: $49,383 $36,847 Nil - Amazon will obtain Facebook's PP&E, Goodwill, and Other Intangibles at Book Value $51,533 Download the following excel file: Pro-Forma Adjustment Evaluation - Question.xlsx 14 Additional annual interest expense due to new debt issued in relation to the transaction is: $7,482 $9,393 $8,383 $38,393 Download the following excel file: Pro-Forma Adjustment Evaluation - Question.xlsx 15 The total after-tax pro-forma adjustment to Amazon's net earnings is expected to be: (531,109) ($22,711) ($44,442) $57,774 Download the following excel file: Pro-Forma Adjustment Evaluation - Question.xlsx 16 The adjusted pro-forma nt earnings for Amazon Inc. is expected to be: $23,688 ($31,109) $30,133 $22,711 All Amounts Denominated in USSMM Unless Otherwise Stated 4 Acquisition Assumptions Acquisition of Facebook by Amazon PP&E, Goodwill and Other Intangibles Assumptions Total Book Value of PP&E, Goodwill and Other Intangibles FMV of PP&E, Goodwill and Other Intangibles FMV of PP&E, Goodwill and Intangibles Attributed to Depreciable Property FMV of PP&E, Goodwill and Intangibles Attributed to Non-Depreciable Property Average Amortization Period (Years) $71,505 $766,981 71.50% 28.50% 13.5 Years 11 12. 13 14 15 16 17 18 19 20 21 22 Debt Assumptions Debt issued for acquisition of Facebook Interest on New Debt Term of New Debt New Debt Financing Fees $187,038 4.0% 10 Years 0.5% 2 23 24 25 26 27 28 Other Assumptions Other Transaction Costs Effective Tax Rate Amazon Net Earnings Facebook Net Earnings $20 30.0% $23, 688 $30,133