medium · Investment Banking accounting

When an acquirer writes up a target's tangible assets (e.g., PP&E) in a stock-for-stock acquisition, what is created on the balance sheet to account for the resulting book-vs-tax basis difference?

  1. Accrued Expenses
  2. Deferred Tax Asset (DTA)
  3. Goodwill
  4. Deferred Tax Liability (DTL)

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