Question
Using the following information, what is your best estimate of the tax basis of Endgame Companys net assets as of 12/31/2023 (net assets equals tax
Using the following information, what is your best estimate of the tax basis of Endgame Companys net assets as of 12/31/2023 (net assets equals tax basis of assets less tax basis of liabilities)?
From the Endgame Companys 12/31/2023 Balance sheet:
Total assets $350,000
Non-deductible goodwill $25,000
Total liabilities $100,000
Deferred tax liabilities $5,000
(Note: Deferred tax assets and liabilities are netted and a single Deferred tax asset or liability is reported on the balance sheet.)
From the Endgame Companys tax footnote in 12/31/2022 annual report:
Provision for tax $1,300
DTAs, attributable to NOLs $20,000
DTLs, attributable to depreciable assets $25,000
Additional information:
The Endgame Company uses an average tax rate of 25% to calculate deferred tax assets and liabilities
What is the Endgames Tax basis net assets?
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