One of my favorite accounting professors, Dr. Larry Watkins, PhD, CPA, retired last year from Northern Arizona University, where I took many accounting courses before finishing up & graduating from Arizona St University in Tempe. In the years after I got my ASA and before he retired, we got together a few times for what…Read More
Case Study: Purchase Price Allocation for a Legacy Food Processing Facility
In an equipment appraisal for financial reporting purposes, the initial rough numbers were almost twice the purchase price. Because the enterprise had been on the market for a number of years and the purchase was an arm’s length transaction, that big difference between the preliminary calculation and the purchase price didn’t make sense … until…Read More
Equipment Depreciation: Discount for Ownership
Calculating accurate deprecation for equipment values is critical; explaining how that depreciation was calculated is just as important, especially for litigation cases, property tax appeals or purchase price allocation situations. Equipment can lose value in any of the three standards areas: physical depreciation, functional obsolescence, and economic obsolescence. In some valuation situations, the loss of value…Read More
Purchase Price Allocation Appraisals
When CPA firms need appraisals for financial reporting purposes, it’s often related to business combinations. Appraisals for business combinations are most commonly needed when one business entirely gains a controlling interest over another. At that point, the purchase price allocated on the books needs to be split out, with specific amounts allocated to inventory, land,…Read More
Tax Appeals, Family Law, and Other Reasons to Get an Appraisal
Reasons for equipment appraisals are varied and multiple, as we discover each time we answer the phone here at our equipment appraisal office in the Sacramento Valley. Will the appraisal be used in a Redding trucking company’s attempt to settle a loss claim with an insurance company, to resolve a family law matter concerning a…Read More