The National Directory of Certified Public Accountants

Ask A CPA - Buying & Selling a Business

How Do You Allocate The Purchase Price Of A Business To Various Assets?

The CPA usually is involved with the allocation of the assets to the purchase price. When a business is acquired, the business being purchased can include various assets including machinery, inventory, fixtures and intangible assets. The allocation of these assets is important because certain assets can be depreciated or written off faster than others.

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