Excluding valuation discounts allows for a more equitable ...

[chads108]

Excluding valuation discounts allows for a more equitable determination of fair value. Substantiate.
 
  What will be an ideal response?

Question 2

The post-closing trial balance is best prepared from the
 a. general ledger.
   b. general journal and the general ledger.
   c. general ledger and the financial statements.
   d. financial statements.
   e. income statement.

[samiel-sayed]

Answer to Question 1

The second most widely recognized standard of value is fair value (FV), which is often used in dissenting minority interest (or oppression) litigation. Because FV is statutorily or judicially defined, its operational meaning varies from state to state (and even court to court). Nonetheless, a common working definition is the pro-rata value of a business, as a going concern, without consideration of any valuation discounts. Importantly, FV does not propose a hypothetical sale in an open and unrestricted market. Dissenting shareholder litigation generally involves a willing buyer but not a willing seller. Moreover, the buyer-the controlling shareholder(s)-generally has more inside information than the seller. In such a context, it is argued that excluding valuation discounts allows for a more equitable determination of value.

Answer to Question 2

a