(Record information on a spreadsheet, prepare a balance sheet, LO 1, 2, 5) In addition to the information provided in Problem 2-5, you also learn the following about Louis’s assets:

Louis thinks that if he closed his practice he could sell his list of patients to another dentist for $125,000.
If Louis tried to sell his equipment he would receive about $25,000.
Louis would be unlikely to receive any money if he tried to sell the furniture and decorations.

Required:
Revise the spreadsheet that you prepared in Problem P2-5 so that you use the additional information that Louis provided you about his assets.
Use the revised spreadsheet to prepare a balance sheet for Louis’ dental practice.
Compare your balance sheet with the one you prepared in Problem 2-5. Which do you think would be more useful for valuing Louis’ practice? Explain.
What problems arise when using market values of Louis’ assets instead of the cost? What are some of the benefits of using the cost of the assets? Is the balance sheet prepared using market value information more or less useful than the balance sheet prepared using the cost information?