Distinguish between measuring assets based on current cost and historical cost.

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Part 1

Current cost is the

Historical cost is the

identical to the one currently held if an identical asset can currently be purchased.

original purchase cost of an asset minus any accumulated depreciation.

original purchase cost of an asset plus any accumulated depreciation.

Part 2

When comparing the two costs,

current-cost ROI

historical-cost ROI

better measures the current economic returns from the investment.