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

Multiple Choice

transaction costs reduce the asset$$s fair value.

transaction costs do not reduce the asset$$s fair value.

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.