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141 The following table summarizes the salary‐related and rent normalization
adjustments required by year Table 13 Salary Normalization Details Table 14 Rent Normalization Details In addition, it is important to note some of the normalization adjustments that are typically made during this process that
were not made in the case of Peachtree Plumbing, Inc, in particular, it is common to see adjustments for owner’s perquisites, other
family members perquisites, and the inclusion of earnings and/or costs from non‐operating assets (such as cars and real estate) in the business to reflect a truer economic picture of the subject company’s operation. There was no evidence of extraordinary perquisites accorded to the family members, nor were there any personal assets that impacted the operation except as noted in the previous balance sheet discussion. Finally, there is noway to determine what the tax position or plans of the hypothetical buyer would be. Therefore, in the ensuing financial normalization analysis the tax rate is assumed to be the tax rate at which the Income generally would be taxed at as if it were operating with no particular attention paid to specific tax planning strategies that a hypothetical
buyer may employ to reduce Share with your friends: 
