tangibles

How Are Tangibles Valued?

Valuing tangible assets involves several steps:
1. Initial Cost: The initial purchase cost of the asset is usually the starting point.
2. Depreciation: Over time, tangible assets depreciate in value. Depreciation methods include straight-line and declining balance methods.
3. Market Value: The current market value can also be considered, especially for assets that are frequently traded.
4. Replacement Cost: This is the cost of replacing the asset with a new one of similar kind and quality.

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