Hey fellow analysts,
I’m doing a liquidation valuation where the deferred tax liabilities of 440 relate to PPE and R&D. The book value of PPE and R&D is 1300 and the liquidation value (market value) of both is 550. How do I adjust the deferred tax liability of 440 to reflect this “write-down”?
In other words, how is the tax value of 200 calculated below?
