Chapter 6: Asset-Based Approach Flashcards
1
Q
How do you calculate the FMV of stock for tax reporting purposes?
A
An average of the high and low prices on the valuation date is generally used to calculate the FMV for tax reporting purposes.
2
Q
What is the difference between market value and fair market value?
A
Market value encompasses a reasonable length of time for exposure on the open market. Fair market value assumes usual market and economic conditions as of the date of the valuation.
