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Book value is an estimate of what an item could or should sell for, market value is what people will pay.
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What is difference between market value and book value?
Book value is an estimate of what an item could or should sell for, market value is what people will pay.
What is the difference between Book value and Market value?
Book value is the price paid for a particular asset. This price never changes so long as you own the asset. On the other hand, market value is the current price at which you can sell an asset. For example, if you bought a house 10 years ago for $300,000, its book value for your entire period of ownership will remain $300,000. If you can sell the house today for $500,000, this would be the market value. Book values are useful to help track profits and losses. If you have owned an investment for a long period of time, the difference between book and market values indicates the profit (or loss) incurred.
Difference between book value and par value?
Book value is the value that is written into a company's books for as asset. Par value, is the face value of an asset, as it is entered into the company's charter. The difference between the two is where it is entered, and how one arrives at the figure.
The difference between book values and market values on the balance sheet and explain which is more important to the financial managers and why?
Discuss the difference between book values and market values on the balance sheet and explain which is more important to the financial manager and why?
How to compute after tax salvage value?
Salvage Value - [Tax * (Market Value - Book Value)
