You are a controller at a company that uses various valuation bases. The newly hired CEO does not have an accounting background and wants to understand the company’s various valuation bases used in GAAP. She has requested that you write a memo to her discussing the various valuation bases used in U.S. GAAP including historical cost, fair market value, liquidation value, replacement value, and depreciated or amortized cost.
Also include in your discussion when is it appropriate to use these different valuations. For each basis in your memo include the basis definition, describe in general terms when it is proper to use the basis, then critique the advantages and disadvantages of it its use.
please answer the whole question.