A donor gives land to a non-profit association, specifying that the land must be used as a children's playground. The non-profit association determines that this restriction would not be transferred to a purchaser if it sold the land. If the land were not used as a playground, it could be sold to be used for residential development, achieving a selling price of  $2 million; based on continuing use as a playground, the land could be sold for $800,000. How much is the fair value of the land?

Answer rating: 100% (QA)

The fair value of the land is 800000 The fair value of an asset is the amount that a willing buyer w... View the full answer