71
Question
What is the fair market value of an item?
What is the fair market value of an item?
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Solution
(A) The amount that a buyer would pay for the item under a fair barter system
(B) The amount that an independent buyer would pay for the item
(C) The amount that the seller’s parents would pay for the item
(D) The cost of an item
Answer (B): The amount that an independent buyer would pay for the item
Explanation: Fair market value is the cost at which property would change hands between a willing purchaser and a willing dealer, neither purchase nor sell, and both having sensible information on every one of the applicable realities or facts.
(A) The amount that a buyer would pay for the item under a fair barter system
(B) The amount that an independent buyer would pay for the item
(C) The amount that the seller’s parents would pay for the item
(D) The cost of an item
Answer (B): The amount that an independent buyer would pay for the item
Explanation: Fair market value is the cost at which property would change hands between a willing purchaser and a willing dealer, neither purchase nor sell, and both having sensible information on every one of the applicable realities or facts.
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