Per U.S. GAAP, fair value for accounting purposes is:

• an entry price.

• an exit price.

• the market price in a forced sale.

• always easily determinable.

When determining the fair value of an asset using an exit price approach,

• fair value is determined by how the company uses the asset.

• management may choose to reduce the fair value of the asset by the approximate amount of expected transaction costs (i.e., costs to dispose of the asset) if such costs are deemed to be material.

• transaction costs do not reduce the assets fair value.

• transaction costs reduce the assets fair value.