Incremental D&A

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Last updated: November 6, 2023

When we allocate the purchase price to the acquired net assets, we usually write-up the value of the tangible and intangible assets acquired. This results in incremental expenses as the write-ups are depreciated and amortized over time. To build the pro forma income statement, we need to account for these incremental expenses as shown below.

 

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Incremental D&A

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