Please REPLY to this post

1. Recognize and describe four methods for valuing assets and explain the strengths and weaknesses of each.

When considering different valuation methods, you have to consider what the advantages, disadvantages are in your specific case. There is not a wrong or right method it is all case by case. Especially when considering methods for tax purposes you need to make sure that the assets are eligible and have a reason why you use that method. 4 methods that you could use are:

- Book value method- this is the most basic method which is recording the asset at the historical cost minus the accumulated depreciation. This method might be used by a healthcare company to record their equipment, machines, land or buildings. You would use it because it is simple to calculate and provides an accurate and preventive estimate. A weakness could be that it does not consider market values and tend to be under/over valuated.

- Another is the market approach, this means that the asset is constantly updated to the current price, this is used mostly with stocks and bonds. A strength is that it provides an accurate price for the asset. Weakness is that it can drop in price quickly.

- income approach is used to present calue and future cash flows. It is commonly used by real estate or business valuations.This method is good at providing valuations and future cash flows. Weakness is that it difficult to accurately predict these cash flows.

There is also a tax basis valuation. This means that the asset is recorded and adjusted depending on their tax available deductions and adjustments. This is used in tax reporting. This helps to provide a great tax plan and to keep it equal.A weakness is that it can be complex and difficult to start recording.

2. Evaluate different ways to adjust the potential differences between the current value and historical values for assets.

You can adjust the differences using the depreciation recapitalization method this a great way to correctly value the asset. Either by using the double declining depreciation method.

Another method is the inflation adjustment this method adjusts the asset by using an inflation index to increase or decrease the historical cost.

3. Discuss how a health care provider indicates the obligation of providing care under a managed care contract that has been paid in advance.

A common arrangement in healthcare is the capitation method. This consists of the healthcare provider receiving a recurring payment by the patient throughout the year. Whenever the patient needs the care it is available for them without paying in the spot. This obligation is written out in the managed care contract. All coverage and limits are outlined within it.

Capitation, Primary CareRead AAFP's policy on primary care capitation in regards to physician services and payment.

https://www.successionresource.com/blog/asset-valuation-methods/