Enter the total purchase price ($) and the fair value of net assets ($) into the Distribution Cost Calculator. The calculator will evaluate and display the Distribution Cost.

## Distribution Cost Formula

The following formula is used to calculate the Distribution Cost.

DC = PP - FVA
• Where DC is the Distribution Cost ($) • PP is the total purchase price ($)
• FVA is the fair value of net assets ($) To calculate the distribution cost, subtract the fair value of net assets from the total purchase price. ## How to Calculate Distribution Cost? The following example problems outline how to calculate Distribution Cost. Example Problem #1: 1. First, determine the total purchase price ($). The total purchase price ($) is given as 9000. 2. Next, determine the fair value of net assets ($). The fair value of net assets ($) is provided as 2000. 3. Finally, calculate the Distribution Cost using the equation above: DC = PP – FVA The values given above are inserted into the equation below: DC = 9000 – 2000 = 7000 ($)

Example Problem #2:

The variables needed for this problem are provided below:

total purchase price ($) = 10000 fair value of net assets ($) = 7000

Entering these values and solving gives:

DC = 10000 – 7000 = 3000.00 (\$)