When determining the fair value of an asset,its fair value is measured by considering its:
A)highest and current use.
B)proposed use.
C)highest and best use.
D)value in exchange.

Question

Quizplus · Accepted Answer

The fair value of an asset is typically determined by considering its highest and best use, which refers to the use of the asset that maximizes its value. This may not necessarily be the current use or proposed use of the asset, but rather the most lucrative and advantageous use. This approach provides a more accurate valuation of the asset and reflects its true worth in the market. Option A mentions current use, Option B mentions proposed use, and Option D mentions value in exchange which are not the ideal measures for determining fair value.

When Determining the Fair Value of an Asset,its Fair Value