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Question 1: NRV calculationg: Net Realizable Value is a method of evaluating the value of the assets held by a company in the context of inventory.
1. Add the total market value of all inventory held by the company. This is the amount the company could sell its assets for.
2. Add the costs associated with selling each asset the company possesses.
3. Subtract the costs from the total market value to get the NRV. Finishing the example, NRV = $35,000 - $12,500 = $22,500.
4) entries of assets and liability were given and we have to calculate the amount of capital
5) expected selling price of asset = 2500
expected cost of completion = 400
expected cost of selling = 100
Required:
what value will be shown in balance sheet if carrying amount of asset is 1500?
what value will be shown in balance sheet if carrying amount of asset is 2500?