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    Professional Issues in Computing

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    Describe how the two types of assets are valued for balance sheet purposes, using the following assets owned by a company that writes and sells software packages (about 500 words):

    a. The company has a stock of 500 user manuals for version 1 of a "package" version 2 of which is to appear shortly. The company paid $5,000 to have 1,000 manuals printed and has been selling them at $25 per copy.

    b. The company has a file server costing $15,000 that is used by the software development teams.

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    Running Head: ASSEST VALUATION

    Assets Valuation for Balance Sheet

    Assets Valuation for Balance Sheet
    The valuation of two assets that are file server and user manuals for balance sheet purpose is valued as follows -
    User Manuals:
    The company has a stock or inventory of 500 user manual for version 1. The version 2 of the package is coming out shortly by the company. The user manuals are inventory for the company that will be included as a current asset in the balance sheet of Software Company. The current assets have a financial value that will be purchased and sold in the normal life of the company's business (Bravo, 2003). The total cost of stock of 500 user manuals was $1250 because it has paid $5000 to purchase 1000 printed user manuals.
    The current assets are valued at ...

    Solution Summary

    Professional issues in computing is examined. How two types of assets are valued for balance sheet purposes are determined.