When determining the fair value of an asset its fair value is based on its:
A)Current use
B)Proposed use
C)Highest and best use
D)Value in use

Question

Quizplus · Accepted Answer

When determining the fair value of an asset, it is important to consider its highest and best use. This refers to the most advantageous use of the asset that is physically possible, legally permissible, and financially feasible. It may differ from the current or proposed use of the asset and takes into account potential future uses or changes in market conditions. Therefore, the fair value of an asset should be based on its highest and best use.

When Determining the Fair Value of an Asset Its Fair