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Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281

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BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281
Textbook Problem
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List four factors that cause the market value of the company as a whole to be greater than the book value of the company.

To determine

List the four factors that would cause the market value of the company to be greater than the book value.

Explanation

Intangible assets: These are the long-term assets which are not physical in nature, but possess value. The intangible assets would be amortized over their definite useful life or limited useful life, and those with indefinite or unlimited lives are not amortized.

List the four factors that would cause the market value of the company to be greater than the book value as follows:

  • Some of the assets of the Company are listed on the balance sheet at amounts other than their market value. For instance: The investments of the marketable securities are listed at a fair value...

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