The value of a property that can be obtained at any particular time from the open market when the property is put for sale is called
- AMarket valueCorrect
- BBook value
- CCurrent value
- DObsolence value
Solution
Concept
Market value
Step-by-step solution
1. The price that a property can fetch at any time in the open market is its market value.
Explanation
Market value is the amount obtainable from a willing buyer in the open market at a given time. Book value is the original cost less depreciation. Obsolescence refers to loss of value through changes in design or usage.
Shortcut
Market value = open market price.
Common mistake
Choosing book value.
Correct answer: A) Market value