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Q: Can the market price be less than the conversion value?
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How can the price of a company's share be less than the face value of the share?

How can the price of a company's share be less than the face value of the share?" How can the price of a company's share be less than the face value of the share?"


What is Expected sales price less selling cost?

Its the net realizable value


What is the property tax rate in British Columbia?

Property Transfer Tax RatesThe amount of tax due depends on the fair market value of the property that is transferred:If the fair market value is $200,000 or less, the tax is 1% of the fairmarketvalue.If the fair market value is greater than $200,000, the tax is 1% of the fairmarket value up to $200,000, plus 2% on the portion of the fair market value that is greater than $200,000.For example:if fair market value of property is $150,000tax payable is: 1% of $150,000 = $1,500if fair market value of property is $250,000 tax payable is: 1% of $200,000 = $2,000 plus 2% of $50,000 = $1,000 for total tax payable of $3,000


Depreciation is a process of cost allocation and not valuation What does this mean?

Depreciation spreads the cost of a fixed asset over the useful life of that asset so a portion of that cost is recognized as an expense in each period that the asset is in service. The original cost, less the accumulated depreciation is the net book value of the asset. The net book value may not represent the actual market value of the asset. Depreciation is not concerned with the market value but rather the value of the contribution that the asset makes to the business.


When selling an asset that has been depreciated is it better to have a big or small capital gain?

It is not so much up to you. If you sell an asset, the selling price minus your basis is your taxable gain. I guess you could sell it for less, but what would that do for you. People learn that doing things so that you have less taxes, is just taking money out of your pocket. If you sell something at a profit, your taxes will be less that one third of your profit, so in order to reduce your taxes, you have to reduce your income. If you try to sell an asset for less to yourself, a family member, or a friend then the price is not an arms length transaction and if audited, you will pay taxes on the fair market value, pay penalties, interest, and probably will be convicted of tax fraud.

Related questions

What is difference between market to book value and price to book value?

That is a good question that a lot of people get confused about. In accounting, assets are recorded on your books at cost (what you paid for them). That value (less any accumulated depreciation or impairment expense) is your book value. That is, your book value is based on what you paid for the asset as opposed to it's market value. A market value (fair value) is what that asset would sell for on the open market if you attempted to sell it. This is a very subjective judgment, which is the main reason accountants don't usually report assets at market value in the United States (there are some exceptions in relation to securities). A price is what an asset actually is being sold for. Price and market value are usually the same thing, but sometimes factors make price higher or lower than market value. This is usually as a result of government regulations, or company pricing policies.


As a community development worker what benefit are there when working with a community?

you can get a piece of land in you own area with less price than the market value.


market value analysis?

these ratios calculate market value of a company. companies with higher market value have higher investment potential compared to those with lower market value. the ratios calculated under this analysis are:a) Earnings per shareEarnings per share = Net income / Shares outstandingb) Price earnings ratioPrice earnings ratio = Market price per share / Earnings per share


Is market capitalization the same as market value?

They are indeed the same since they refer to the same thing; the "value" quoted as the price of the stock, and the total market value of the issued and outstanding shares. If you has asked for capitalization, instead of "market capitalization" there might have been room for a difference, since a company could be initially capitalized at 100 million, but see the market value reflected as less depending on market activity.


How can the price of a company's share be less than the face value of the share?

How can the price of a company's share be less than the face value of the share?" How can the price of a company's share be less than the face value of the share?"


Browning 1919A1 machine gun value?

$18,000 in 2012 price on machinegunprices.com original .30 caliber - less if altered to other calibers $600 open market price (used)


What does a true market value mean when buying a car?

The true market value of a new car is the price it is selling for in your area. It can be far less that the sticker price. If you know the TMV of a particular car you are interested in it will help you when you negotiate the final price you pay. You will know what this dealership has been selling the same car for to other buyers. This gives you power to negotiate.


Why is the element platinum worth 1420 dollars?

This is the value that the market has placed on it. The element itself is less common than gold, and since people are willing to buy this metal in order to use it to make jewelry and computer parts, the market has valued this element as so exhorbitent a price. That and considering that when people get nervious on the market they put their money into things that do not lose their value usually, the price in platinum has risen as had the price of gold and silver.


When a broker is unable to convince a property owner that the current market value is the price at which the property should be listed the broker should?

Do what their clients request since the broker works for the seller. Although, the broker should also inform the seller that their house may sit longer on the market than comparable houses in the market and if an offer is received it could be far less than the asking price and closer to the market value.


What is the value of ivory buddha statues in the current market?

The statues can vary in price widely. Some of the statues can be found for as less as $10, while others are upwards of $2,000.


What type of market is the commodity market?

there are two types that are part of the commodity futures market. A normal futures market is one where the price of the nearby contract is less than the price of the distant futures contract. The other is an inverted futures market, the price of the near contract is greater then the price of the distant contract.


Is book value an estimate of an asset's fair market value?

Not necessarily. Book value is the basis of the item less accumulated depreciation. Book value is rarely the actual cash value of an item, any item. Book value has to do with accounting and taxes, not sales price or actual cash value.