Question: On December 31, 2010, Brooks Co. decided to end operations and dispose of its assets within three months. At December 31, 2010, the net realizable

On December 31, 2010, Brooks Co. decided to end operations and dispose of its assets within three months. At December 31, 2010, the net realizable value of the equipment was below historical cost. What is the appropriate measurement basis for equipment included in Brooks’ December 31, 2010 balance sheet?

a. Historical cost.

b. Current reproduction cost.

c. Net realizable value.

d. Current replacement cost.

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