Value is entirely subjective.
What may seem fair and equitable to you may not be so to someone else.
You may pay many millions for a painting or other work of art. Other people would not be willing to do so. Given the wherewithal.
A computer or TV may be worth 1000 (of whatever your currency is). To you.
Other people have different priorities.
Market value is what you can reasonably sell something for.
The appraised value is supposed to arrive at fair market value. Remember that property owned by a decedent gets a new basis, which is equal to the value as of the date of death. When a buyer purchases the property for its value, there is no capital gain or loss. If the buyer pays less than fair market value, then you can simply allocate the difference between FMV and the purchase price to the buyer's share of the estate.
Pasong Langka, Cavite
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.
One of the key factors that can change the market and fair value of fixed rate notes and bonds is an increase or decrease in market interest rates. Even though a bond has a fixed rate, it's value is dependent on current yields in the market and the value of the bond will move inversely to interest rate changes.
The value of stock represents a fair value of an underlying company as perceived by market participants, mostly driven by expectations of future earnings growth.
Home equity is defined as the difference between the fair market value and any liens on the home.
Book value of asset is the value of asset shown in books of accounts while fair value of asset is the current price at which that product is selling or sellable in market.
Home equity is the unlimited interest of one's property as listed on the market. It's the difference between the home's fair market value and the balance owed on the liens that are on the property.
Your equity in your house is the difference between what the house is worth, the fair market value, and how much you owe on it.
$80,000
Yes. The insurance policy is a contract. All it requires the insurance company to do is to pay the fair market value of the vehicle. You would need to get what is called gap insurance to pay the difference between the market value and the loan value.
The appraised value is supposed to arrive at fair market value. Remember that property owned by a decedent gets a new basis, which is equal to the value as of the date of death. When a buyer purchases the property for its value, there is no capital gain or loss. If the buyer pays less than fair market value, then you can simply allocate the difference between FMV and the purchase price to the buyer's share of the estate.
You can look on the internet to find the fair market value for trucks and other vehicles. You can also pick up a book listing the Fair market value in a store. Usually these are free.
Gross Versus Net ValueFair market value is the price an asset would bring if it were sold on a voluntary basis, meaning neither buyer nor seller has an obligation to make the exchange. Gross fair market value is the fair market value of an asset before allowing for any liabilities such as loans, taxes or liens. Suppose a warehouse has a gross fair market value of $250,000. If the property is collateral for a $100,000 business loan, the net fair market value of the asset becomes $150,000.
securities that are made of different stocks
Fair Market Value
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