The market value of the fixed assets is assumed to be 11,000, while the corresponding...

90.2K

Verified Solution

Question

Accounting

image The market value of the fixed assets is assumed to be 11,000, while the corresponding value of the inventory is 18,000. Accounts receivable are overvalued by a total of 400. The market value is based on "continued operation", tariffs and prudent assessments. 285 of it long-term debt is deferred tax. The company has no deferred tax asset in the balance sheet. Use effective tax rate of 21%. TASK: Calculate the value-adjusted equity
 

Balance 31.12 Fixed Assets Inventory Accounts recievable Liquid Assets Sum Assets Equity Long-term debt Short-term debt Sum equity and debt Year 1 9 760 16 440 4 800 2 000 33 000 10 200 10 800 13 000 33 000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students