Is the total purchase price
paid over five years $400,000 or $500,000?
To prove it is separate from goodwill, a bank's aggregate purchase price
must be allocated among tangible assets, specifically identifiable intangibles and goodwill (if any), based on their respective FMVs.
The number of shares to be purchased and the purchase price
per share are preliminary.
108(e)(5), provided the only situation in which the purchase price
could be reduced in lieu of income recognition, or whether the exceptions established by the courts before 1980 remain in existence.
Valuation consultants, the IRS and the Tax Court all have concentrated on economic substance and the intent of the parties as the controlling factors in determining whether to allocate a portion of the purchase price
to a covenant not to compete.
in similar fashion, APBO 21 (8-71), [paragraph]12, provides that a note's face amount is used to measure assets' purchase price
for financial reporting, unless the stated interest rate is unreasonable or the face amount price is materially different from a cash purchase price
The Tax Court concluded that the purchase price
of the McDonald's franchises should be determined by subtracting the value of the tangible assets (and minimal going concern value) from the total purchase price
Cumulus has accepted for purchase 11,500,000 shares at the per share purchase price
Whether an intangible can satisfy these two tests has increasingly become a source of controversy between taxpayers and the IRS, particularly since the advent of Form 8594, Asset Acquisition Statement Under Section 1060, and the closing of the gap between regular tax rates and capital gains rates (which has limited the instances in which buyers and sellers are truly at odds in negotiating purchase price
In the tender offer, Cumulus offered to purchase for cash up to 11,500,000 shares of its Class A Common Stock at a per share purchase price
not less than $11.
0 Million Shares of its Class B Common Stock from Affiliates of Bank of America Corporation at the Tender Offer Purchase Price
The LOC is sized to cover the principal amount, and an amount equal to 45 days of accrued interest at 10%, based on a 365-day year, and purchase price
for tendered bonds.