Eastern Nebraska | piratepride2 - 1/20/2018 18:46
Question for you all
When computing balance sheets and other financials, do you guys use market value or purchase price for your asset value? If you purchase ground for say $3000/acre and the land was appraised or valued at $4500/acre, which value do you all use for your asset. I know the liabilities have to be the purchase amount/financed amount. If you use market value do you immediately have $1500/acre in land equity?
I only value land on the balance sheet as high as needed to keep my banker happy. Its a lot easier to raise it if the need for more credit arises. |