Calculation of Stock Value:
- Given stock in balance sheet: $285,000
- Valued at 95% of the stock value

Calculation:
- 95% of $285,000 = 0.95 x $285,000 = $270,750

Explanation:
- The treatment of stock valued at 95% means that the company's stock is being valued at 95% of its original value as stated in the balance sheet. This adjustment is made to reflect a more conservative estimate of the stock's worth.

Importance of Stock Valuation:
- Accurate stock valuation is crucial for financial reporting and decision-making.
- It impacts the company's financial statements and overall performance.

Impact on Financial Statements:
- Adjusting the stock value to 95% will affect the company's balance sheet and profit and loss statement.
- It may result in changes to the company's equity and profitability ratios.

Decision Making:
- Management can use the adjusted stock value to make informed decisions about inventory management and pricing strategies.
- It helps in assessing the company's financial health and performance accurately.

Conclusion:
- The treatment of stock valued at 95% involves adjusting the stock value to reflect a more conservative estimate. This adjustment impacts the company's financial statements and aids in decision-making processes. Accurate stock valuation is essential for maintaining transparency and making informed business decisions.

I guess that this is the case of undervaluation of stock so u have to add back 5 %in the new balance sheet and u have to show this in the reval cr side as assets value is increased..Treatment Cr side of reval by 14250balance sheet assets side as299250(285000+14250)Hope u've understood