Which of the following is an example of an orderly transaction for the purposes of determining fair value?
A)The prices of goods sold in a liquidation or fire sale.
B)The prices of goods sold at sale prices.
C)The prices of goods sold to related parties such as directors.
D)The price of goods sold under normal trading conditions.

Question

Quizplus · Accepted Answer

An orderly transaction refers to a transaction that takes place under normal trading conditions, free of any duress or fire sale. This provides a fair representation of the market value of the asset being valued. Choices A, B, and C do not represent normal trading conditions and may lead to an inaccurate valuation.

Which of the Following Is an Example of an Orderly