Chapter 5 - Balance Sheet and Statement of Cash Flows - Review and Practice - Using Your Judgment - Accounting, Analysis, and Principles - Page 257: Principles

The fair value of Hopkins' intangible assets may not be conclusive and persuasive since it is generated internally. The values are not comparable. Furthermore, the intangible assets may not be reflective of Hopkins’ liquidity. Similarly, the unrealized gains of Hopkins’ assets may not offer a perfect picture regarding Hopkins’ ability to raise funds and use them in repaying the loan.

The fair value of Hopkins' intangible assets may not be conclusive and persuasive since it is generated internally. The values are not comparable. Furthermore, the intangible assets may not be reflective of Hopkins’ liquidity. Similarly, the unrealized gains of Hopkins’ assets may not offer a perfect picture regarding Hopkins’ ability to raise funds and use them in repaying the loan.