In addition to the information provided in P2-9, you also learn the following about Louis' assets: i.

Question:

In addition to the information provided in P2-9, you also learn the following about Louis' assets:
i. Louis thinks that if he closed his practice he could sell his list of patients to another dentist for $125,000.
ii. If Louis tried to sell his equipment he would receive about $25,000.
iii. Louis would be unlikely to receive any money if he tried to sell the furniture and decorations.

Required:
a. Use the additional information along with the information in P2-9 to prepare a re vised personal for Louis' dental practice. Explain the choices you made in preparing the statement.
b. Compare your with the one you prepared in P2-9. Which do you think would be more useful for valuing Louis' practice? Explain.
c. What problems arise when using market values of Louis' assets instead of the cost? What are some of the benefits of using the cost of the assets? Is the prepared using market value information more or less useful than the prepared using the cost information? Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...