Matthew owns a piece of land with a toy factory on it in a small town near Melbourne city. The factory is a family business that started a century ago and is currently used to produce handmade wooden toys. However, for market participants, they would redevelop the land to build a retail shopping centre. Matthew recently received an attractive offer from property redevelopers, but he rejected the offer because he has no intention to stop the family business.

Which of the following statements is correct regarding the fair value of land?

Group of answer choices

The fair value of the land cannot be determined because we do not know the highest and best use of the asset.

The fair value of the land should be based on its current use as Matthew has no intention to sell the land and stop the family business.

The fair value of the land should be based on stand-alone valuation premise.

The fair value of the land should be based on in-combination valuation premise.