Question 1: A valuator determines that the fair value of 100% of a busines is $100,000. In finding the fair value of a 40% ownership interest, a 10% minority interest discount and a 20% lack of marketability discount are appropriate. The fair value of the 40% ownership interest is
A) $40,000.
B) $28,800.
C) $36,000.
D) $38,000.