purchase price

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The value of a thing with real or perceived worth. Price represents the amount of value the market has assigned, fairly or unfairly, to a good or service. Normally, prices are expressed in terms of money, but practices such as countertrade and PIK securities indicate that prices may be expressed in goods: "four chickens for two sheep." Price is a necessary component of trade.

Prices tend to be regulated by the law of supply and demand; that is, a price of a good or service increases with smaller supply and/or greater demand. A corollary to this is the idea that commoditization drives prices down because it increases supply (sometimes vastly) while leaving demand the same. Prices likewise rise when the value of money declines. Governments can and have controlled the prices of certain goods and services by subsidy or decree. This is usually an anti-inflationary measure and tends to distort, rather than eliminate, the law of supply and demand. It is thus not generally sustainable as a mechanism for controlling price.

purchase price

The contractually agreed upon price for a property, before credits, adjustments, or concessions.

References in periodicals archive ?
In these cases, the purchase price is a percentage, paid over a period of years, of revenue from retained clients.
He had the option of borrowing 65 per cent of the purchase price from his bank and leveraging his equipment for the remainder.
Less than 10 percent of the purchase prices were for identifiable tangible assets.
The entire purchase price had to be capitalized and depreciated.
Will the purchase price for assets be made to the seller's C corp, thereby resulting in income that is subject to double taxation?
In the event of a premium purchase, the amount by which purchase price exceeds the FMV of the assets acquired can only be allocated to the residual: class.
Under the new rule, the purchase price adjustment alternative at the partnership level will be more favorable in many cases, only requiring a reduction in the asset's basis.
The original purchase price of the raw materials and all expenses associated with transforming these raw materials into work-in-process and finished goods are analyzed and accumulated, to get an indication of the cost or "effort" required to perform the process again and to replace or reproduce the asset with inventory of like utility.
In addition, a corporation may be in a better financial position to pay the purchase price (or if funded with life insurance, the premium payments).
However, if the purchaser pays for the intangible assets over a period of years and those payments contain unstated interest, a portion of the purchase price will be treated as interest under Sec.
Since it's likely some portion of the purchase price must be allocated to goodwill, accurate appraisals of both tangible and intangible assets are essential to obtaining a tax deduction for the cost of intangibles.
DUBLIN, Ohio -- Third graph should read: Based on a preliminary count by the depositary, approximately 22,418,000 common shares were properly tendered and not withdrawn at prices at or below the purchase price.