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The fair value in a most advantageous market is:Question 7Select one:a.Price (with no deductions)b.Price less transaction costsc.Price less transaction and transport costsd.Price less transport costs

Question

The fair value in a most advantageous market is:Question 7Select one:a.Price (with no deductions)b.Price less transaction costsc.Price less transaction and transport costsd.Price less transport costs

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Solution

The fair value in a most advantageous market is:

c. Price less transaction and transport costs

This is because the most advantageous market is the one that maximizes the amount that would be received to sell the asset or minimizes the amount that would be paid to transfer the liability, after taking into account transaction costs and transport costs.

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