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 (\$)

## 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 (\$)