2016
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Total number of shares
|
|
|
Book value of liabilities
|
|
|
Market cap
|
|
|
All of the above
|
Detailed explanation-1: -If you sell a house, the amount a buyer is willing to pay for it will determine its fair market value. According to the Income-tax Act, 1961, FMV shall be the higher of cost of acquisition of the property or the price that the property shall ordinarily sell for if sold in the open market.
Detailed explanation-2: -The fair market value is the price an asset would sell for on the open market when certain conditions are met. The conditions are: the parties involved are aware of all the facts, are acting in their own interest, are free of any pressure to buy or sell, and have ample time to make the decision.
Detailed explanation-3: -In case of assets acquired prior to the base year, taxpayer has an option to choose either Fair Market Value (FMV) as on the first day of base year or actual cost to arrive at indexed cost and compute capital gain/loss.