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Module I· Interview Essentials AccountingAdvanced
Question

Acquisition for 1,000 cash. Target book net assets 600. PPA step-up to PP&E 200, goodwill plug. Three-statement impact for the group? Tax 25%.

Answer

Goodwill plug is 200. Cash -1,000; net assets +600; PP&E step-up +200; goodwill +200; no immediate P&L impact.

Deep diveShow more details

If PP&E step-up creates deferred tax liability, goodwill may change depending on detailed PPA mechanics.

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