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What is the fair value of the liability explain

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Reference no: EM132125716

Question - Domingo Entity entered into a contract to exchange a liability. However, this particular liability does not have a quoted price in Domingo's principle market. Sabado Entity holds an asset similar to the liability to be exchanged at a price of $45,000. Domingo decided that their finance department could incorporate a complex valuation model using estimates that would generate a more accurate fair value of $60,000. What is the fair value of the liability? Explain.

Reference no: EM132125716

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