Comments on: Solving for depreciation and amortization… Help!? http://reversemortgage.info-junction.net/solving-for-depreciation-and-amortization-help/ What is Reverse Mortgage, How does reverse mortgage work, Advantages & Disadvantages of reverse mortgage. Mon, 30 Jan 2012 01:01:00 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Kathryn http://reversemortgage.info-junction.net/solving-for-depreciation-and-amortization-help/comment-page-1/#comment-15448 Kathryn Tue, 02 Feb 2010 11:08:15 +0000 http://reversemortgage.info-junction.net/solving-for-depreciation-and-amortization-help/#comment-15448 Unless I'm not understanding the given information, this doesn't appear to work. Costs excluding depreciation and amortization = 13,144,680 * .61 = 8,018,254.80. This means that even without depreciation and amortization and interest expense, income before taxes is 13,144,680 - 8,018,254.80 = 5,126,425.20. But if you compute net income before taxes by dividing income after taxes by one minus the tax rate, you get: 5,330,275/(1 - .34) = 8,076,174.24 This means that you'd need to have negative depreciation and amortization to make this work. Unless I’m not understanding the given information, this doesn’t appear to work.

Costs excluding depreciation and amortization = 13,144,680 * .61 = 8,018,254.80.

This means that even without depreciation and amortization and interest expense, income before taxes is 13,144,680 – 8,018,254.80 = 5,126,425.20.

But if you compute net income before taxes by dividing income after taxes by one minus the tax rate, you get: 5,330,275/(1 – .34) = 8,076,174.24

This means that you’d need to have negative depreciation and amortization to make this work.

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