Finance / July 19, 2018 / Parker Hardy
Accounting estimates the decrease in value using the information regarding the useful life of the asset. This is useful for estimation of property value for taxation purposes like property tax etc. For such assets like real estate, market and economic conditions are likely to be crucial such as in cases of economic downturn.
Net equity valueNet equity value is the fair market value of a business’s assets minus its liabilities. This measured value is used to determine a business’s net worth - or the funds that would be left over and available to shareholders if all liabilities and debts were paid off.
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