Breck Resorts Corp. acquired a piece of land in a business combination from Rocky Ridge Corp. The land originally cost $9.2 million when purchased by Rocky Ridge. The fair value of the land has subsequently been measured by Breck Resorts for two different purposes, one as a site for a hotel and one as a site for an Olympic class skating rink. The hotel fair value was estimated to be $23 million and the skating rink fair value was estimated to be $11.5 million. 

► What is the premise that Breck Resorts should use in fair valuing the land and what is the corresponding amount?

Answer rating: 100% (QA)

The premise that Breck Resorts should use in fair valuing the land depends on its intended use after ... View the full answer