About Lesson
Process of taking farm inventory
There are two steps involved in taking farm inventory
- Examination of physical assets- land, buildings, fences, equipment, livestock, supplies etc.
- Valuation of physical assets- each of these items should be valued using an appropriate valuation method. The important and commonly used methods for the valuation are as follows:
- Cost-Depreciation
- Valuation at market price
- Net selling price
- Replacement cost-depreciation
- Income capitalization
- Valuation at cost
- Replacement cost