Problem statement: Explain how the 2-types of assets are valued for balance sheet purposes, using the following assets owned by a corporation that writes and sells software packages:
[1] The corporation has a stock of 500 user manuals for version 1 of a "package" version 2 of which is to appear shortly. The company paid $5,000 to have 1,000 manuals printed and has been selling them at $25 per copy.
[2] The corporation has a file server costing $15,000 that is used by the software development teams.