a. Use the additional information along with the information provided in P2-7 to prepare a revised personal balance sheet for Nathan. Explain the choices you made in preparing the statement.
b. Compare your balance sheet with the one you prepared in P2-7. Which do you think would be more useful to the art school in assessing Nathan’s need for financial assistance? Explain.
c. What problems arise when using market values of Nathan’s 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?