Entity A hopes to sell a large printing machine that it purchased three years ago. The value at the time of purchase was $80,000. Entity A will need to spend $5,000 to repair the machine to selling conditions and will spend an additional $5,000 in transportation costs. Entity A also will incur a commission of 5% of the sale. The market price for the machine is currently $75,000. What is the fair value that Entity A should measure the machine at?
A) $61,250
B) $65,000
C) $70,000
D) $75,000
E) $80,000

Question

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The Answer of Entity A hopes to sell a large printing machine that it purchased three years ago. The value at the time of purchase was $80,000. Entity A will need to spend $5,000 to repair the machine to selling conditions and will spend an additional $5,000 in transportation costs. Entity A also will incur a commission of 5% of the sale. The market price for the machine is currently $75,000. What is the fair value that Entity A should measure the machine at?
A) $61,250
B) $65,000
C) $70,000
D) $75,000
E) $80,000

Entity a Hopes to Sell a Large Printing Machine That