Market Value of an Asset

Market Value of an Asset is also known as the fair value of an asset and it is the price at which an asset can be sold for in its particular market. For instance, a car that was bought for $15,000 has a book value of $15k but its market value may have declined to $12,000 and that should thus be its 'fair value.' With new accounting standards, accounting rules & GAAP are adopting fair values more in accounting for assets, especially those that have changing fair values.

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