Zoom owns 50 non-financial assets. It has the ability to purchase those assets from four markets (with same specification) and wishes to measure their fair values for the purpose of the revaluation policy. Four markets currently exist for this type of non-financial asset; Zoom has transacted regularly in three of them. At measurement date, the volume, prices and various costs of each non-financial asset in each respective market are as follows: Market Sale price Past volume with Zoom Total market volume Transaction costs Transport costs East $46,000 1,200 180,000 $500 $400 South $46,000 1,500 150,000 $400 $700 West $45,000 0 200,000 $300 $600 North $45,000 1,700 120,000 $200 $500 Based on the above information, which market is the most advantageous market (if principle market is restricted) and what is the fair value of all 50 non-financial assets under the most advantageous market as at the measurement date assuming that the current use of this type of non-financial asset is its the highest and best use? A. Market East; $2.275 million B. Market East; $2.28 million C. Market West; $2.285 million D. Market West; $2.285 million
Zoom owns 50 non-financial assets. It has the ability to purchase those assets from four markets (with same specification) and wishes to measure their fair values for the purpose of the revaluation policy. Four markets currently exist for this type of non-financial asset; Zoom has transacted regularly in three of them. At measurement date, the volume, prices and various costs of each non-financial asset in each respective market are as follows: Market Sale price Past volume with Zoom Total market volume Transaction costs Transport costs East $46,000 1,200 180,000 $500 $400 South $46,000 1,500 150,000 $400 $700 West $45,000 0 200,000 $300 $600 North $45,000 1,700 120,000 $200 $500 Based on the above information, which market is the most advantageous market (if principle market is restricted) and what is the fair value of all 50 non-financial assets under the most advantageous market as at the measurement date assuming that the current use of this type of non-financial asset is its the highest and best use? A. Market East; $2.275 million B. Market East; $2.28 million C. Market West; $2.285 million D. Market West; $2.285 million
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Zoom owns 50 non-financial assets. It has the ability to purchase those assets from four markets (with same specification) and wishes to measure their fair values for the purpose of the revaluation policy. Four markets currently exist for this type of non-financial asset; Zoom has transacted regularly in three of them. At measurement date, the volume, prices and various costs of each non-financial asset in each respective market are as follows:
| Market | Sale price | Past volume with Zoom | Total market volume | Transaction costs | Transport costs |
| East | $46,000 | 1,200 | 180,000 | $500 | $400 |
| South | $46,000 | 1,500 | 150,000 | $400 | $700 |
| West | $45,000 | 0 | 200,000 | $300 | $600 |
| North | $45,000 | 1,700 | 120,000 | $200 | $500 |
Based on the above information, which market is the most advantageous market (if principle market is restricted) and what is the fair value of all 50 non-financial assets under the most advantageous market as at the measurement date assuming that the current use of this type of non-financial asset is its the highest and best use?
A.
Market East; $2.275 million
B.
Market East; $2.28 million
C.
Market West; $2.285 million
D.
Market West; $2.285 million
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