Explain how Thomas Co should measure the fair value

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Question - Thomas Co holds an asset that is traded in three different markets: Adelaide, Brisbane, and Perth. Hope Ltd normally trades in Perth. Some information gathered in relation to these three markets is as follows.

 

Adelaide

Brisbane

Perth

Annual volume

60,000

24,000

12,000

Price per unit

$200

$192

$212

Transportation cost per unit

$12

$12

$16

Transaction cost per unit

$4

$8

$8

Requirement - Using the above information, explain how Thomas Co should measure the fair value of the asset it holds.

Reference no: EM132846597

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