Fair Market Value

the price, expressed in terms of cash equiva- lents, at which property would change hands between a hypothetical willing and able buyer and a hypothetical willing and able seller, act- ing at arms length in an open and unrestricted market, when neither is under compulsion to buy or sell and when both have reasonable knowledge of the relevant facts.

Source:AICPA.ORG

« Back to Glossary Index
Loading...