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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?


To: Joe NYC who wrote (139105)7/12/2001 7:11:15 AM
From: Dave  Respond to of 186894
 
Jozef,

Depends on the type of transaction.

First off, say the company was worth 7M and Intel paid 10M plus an additional 2M for a couple of lawyers and investment bankers.

The 2M is written off that Q as a one time charge
3M is added to the books as good will and will be amortized over a period of time (sometimes as much as 20 years)
Under purchase accounting, the assets of the company are re-valued at market prices....