Reference no: EM133144630
Question - Arsenio Investment, Inc. is a private company that invests in various financial and non-financial assets for its shareholders. Assets are measured at fair value at each reporting date. Arsenio owns a group of 10 automobiles, previously used by the senior executives of Arsenio, that are currently for sale. The automobiles are currently carried at $15,000 per auto for a total of $150,000. They have low mileage and could be sold in either the retail market or the dealer market. The dealer market is an active market and management could access that market the next day. Management has been told by a reputable dealer that the autos could be sold for approximately $13,000 per auto. The retail market is slightly harder to access and would take some time to dispose of the automobiles. Used car pricing guides put the sales prices of the autos at approximately $15,500. The CIO is proposing to measure the fair value of the automobiles at December 31, 2021, at $15,000, the current carrying amount, as he believes that through orderly sales within the next two to three months the automobiles could be sold in the retail market for at least $15,000 per auto.
Evaluate the CIO's valuation approach.
If you agree, state your reasons. Also, determine if there are other valuation approaches that could be used. (Explain your reasoning and provide support).
If you disagree, state your reasons and suggest either a different approach or how you might change the current approach and what, if any, adjustments should be made to the valuation. (Explain your reasoning and provide support).
|
Diversity leadership skill
: Diversity leadership skill, sample interview questions and post a description of them and their responses. Add your own commentary answering the following quest
|
|
Determine the gain or loss on the sale of the equipment
: Assuming the equipment was sold at the end of year 2 for $7,860, determine the gain or loss on the sale of the equipment
|
|
Determine the cost of the land to be reported
: A contractor was paid $954,600 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet
|
|
Effective goal setting and time management
: Discuss the relationship between effective goal setting and time management.
|
|
Evaluate the cio valuation approach
: The CIO is proposing to measure the fair value of the automobiles at December 31, 2021, at $15,000, Evaluate the CIO valuation approach
|
|
Barriers and facilitators that influence team performance
: What recommendations would you make for your team to improve its performance and What are the barriers and facilitators that influence team performance
|
|
Situation analysis between best buy-amazon
: I need a situation analysis between Best Buy, Amazon, Walmart, and eBay answering the following three bulletins:
|
|
How does the innovation of technology contribute
: How does the innovation of technology contribute to cultural change (1 paragraph)
|
|
Compute the net dollar advantage or disadvantage
: Royal Company has determined that $15 of the fixed manufacturing overhead being applied. Compute the net dollar advantage or disadvantage of accepting the offer
|