Explain the four methods of valuing assets

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Problem 1: Evaluate the four methods of valuing assets and explain the strengths and weaknesses of each.

Price-level adjusted historical cost-Avaluation method that adjusts the asset's historical cost, based on the general rate of inflation.
Net realizable value-Avaluation method based on the amount received if it were sold, net any costs related to the sale.
Future profits-Avaluation method requiring each asset be valued on the basis of the amount of additional profits that can be generated using the asset.
Replacement cost-Avaluation method under which each asset is valued at the amount it would cost to replace the asset

 

Reference no: EM132990771

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