Which of the following is NOT one of the requirements for the determination of fair market value (FMV)?
A)Open and restricted markets
B)Informed and prudent parties
C)Arm's length transaction
D)Neither party is under compulsion to transact

Question

Quizplus · Accepted Answer

The concept of fair market value (FMV) assumes that the transaction occurs in an open and unrestricted market, which means that all parties have access to all pertinent information, are acting in their own best interests, and are not under any undue pressure to complete the transaction. Therefore, "Open and restricted markets" is not a requirement for FMV, as the market should be open and unrestricted, not open and restricted.

Which of the Following Is NOT One of the Requirements