a) The following is an excerpt from the balance sheet of Enterprise Ltd.
NON-CURRENT ASSETS
Land at fair value ............................. $100m
Property at cost ................................ $150m
Less accumulated depreciation .............. 40m
$110m
Explain what this excerpt indicates about how Enterprise Ltd has valued:
i) Land
ii) Property.
In your answer indicate whether it is likely that either of these assets appear on the balance sheet at their current market value.
b) Outline one way in which the amount of accounts receivable that will eventually be written off as bad debts could be estimated.