Greetings,
I was reading an example whereby an auction for a painting was being held and the painting sold for $30M, however there were 2 bidders, one at $29M and the other at $30M.
- According to Fair Market Value , the definition held because at a certain point in time there was a willing buyer and a willing seller for $29M.
- However, because it was sold for $30M, the Fair Value became $30M. And so Goodwill of $1M was created.
What is the critical difference?