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Depreciation Worksheet  Form

Depreciation Worksheet Form

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Instructions and help about form 4562 depreciation worksheet

okay working capital is done the next step is to calculate depreciation and this is a simplified depreciation schedule where we're simply taking a percent of the opening balance there are all sorts of more complex ways to calculate depreciation with detailed schedules broken down by assets etc and that's perfectly fine but for the purposes of an M&A model depreciation is not a major focus and calculation so we're using a simplified assumption so that we can focus on the ins and outs of M&A transactions what is important to understand here is that we take the closing balance from the pro forma balance sheet where we've combined the pp and E from the two businesses we've done our fair value adjustments etc so we've got that as the stub period closing balance the next period opening balance is going to be equal to that this is a quirk screw calculation that pulls the numbers forward then we add capex so what I want to mention

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