Essay
Kentucky Derby Entity (KDE) owns a very successful horse track that draws large crowds on race day. Recently real estate developers have been buying the land surrounding the race track in order to construct office and residential buildings. The real estate developers offered KDE $15,000,000 for its property. KDE had an independent appraisal putting the value of the property as a horse track (its present use) at $13,000,000. KDE management has no intention of selling the property to anyone and intends to operate the track for horse racing indefinitely. What is the fair value of the KDE race track that will be stated in KDE's financial statements?
Correct Answer:
Verified
Correct Answer:
Verified
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