Hello All,
I am stuck. I need help. Question - Kaplan’s notes - Page 236 (2013 series - Book 3).
Example is about Deferred Tax Liabilities. The carrying value calculated is $400K. I am not sure how this is possible because EBITDA = $500K and Depreciation = $200K. Hence, ‘carrying value’ should be $300K. Am I right? Moreover, Tax base should be $200K because accelerated depreciation for tax = $300K in the first year. What am I missing here?
Any thoughts?
Thanks in advance.