The actual value of an asset, or the price of an asset, or the price for which it can reasonably be expected to sell in the open market is its:
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A. B. C. D.D
The answer to this question is D. Fair market value.
The fair market value of an asset is the price at which it could be sold in the open market in a transaction between a willing buyer and a willing seller, both of whom have reasonable knowledge of the relevant facts and are acting in their own best interests.
The fair market value is influenced by various factors such as the supply and demand for the asset, its age, condition, location, and other relevant economic factors. It is commonly used in accounting, taxation, and legal contexts as a basis for valuing assets and determining taxes, insurance premiums, and compensation in legal proceedings.
Book value, on the other hand, is the value of an asset as recorded in a company's accounting records, after subtracting any accumulated depreciation or amortization. It is a historical cost-based measure that does not necessarily reflect the current market value of the asset.
Depreciation amount is the annual decrease in the book value of an asset due to wear and tear, obsolescence, or other factors. It is a non-cash expense that reflects the declining usefulness of an asset over time.
Actual price is simply the price paid for an asset in a particular transaction, which may or may not reflect its fair market value.
In summary, the fair market value is the most accurate measure of an asset's current value, as it takes into account all relevant economic factors and reflects the price that a knowledgeable buyer and seller would agree upon in an open market transaction.