Question

Just do the 1A. How to find the percentage of estimated market value? show answers and explanations. Thank you

Answer 1

Answer)

Estimated Fair market value is net realisable value of that asset .

Percentage of estimated market value:

Estimated market value/Book value×100.

For example,A Land book value is $10000 and it's estimated market value is $12000.The estimated market value percentage:

$12000/$10000×100=120%

Here,that percentage is showing profit as it's percentage is over 100%

In another example,A car book value is $600 after considering Depreciation for all the years and it's market realisable value is $450.Its estimated market value percentage:

$450/$600×100=75%

Here it indicates loss as it's percentage is less than 100%.