The price at which goods and services are bought and sold between willing sellers and buyers in an arm's-length transaction is called:
A)book value.
B)disposal value.
C)fair market value.
D)replacement value.

Question

Quizplus · Accepted Answer

Fair market value is the most accurate reflection of the current market price of goods or services being exchanged between two parties who are not related or have no overt pressure to buy or sell. It is the price at which a willing buyer and a willing seller agree to a transaction, with both having reasonable knowledge of the relevant facts and with neither being under compulsion to act. The other options (A, B, and D) are not relevant to the fair market value of an asset or service.

The Price at Which Goods and Services Are Bought and Sold