As detailed in Lecture 2, under US GAAP accounting, there is a large difference between the market and book value of a companys assets. Why does this difference in valuation between market and book values exist?

A. The Market price of an asset is the price the highest bidder within the market is willing to pay, whereas the book value is simply an accounting based, formulaic value.

B. Many assets, such as buildings, machinery, and equipment are depreciated over many years causing their book value to appear different than their actual market value.

C. Assets such as land, must be recorded at their historical cost, which is typically much lower than the current market value of such land as it was often purchased many decades ago.

D. All of the above.