The Mountain View Company acquired a piece of land in a business combination transaction from the Valley View Company, an unrelated company. The land originally cost $4 million when purchased by Valley View. The fair value of the land has subsequently been considered by Mountain View for two different purposes, one as a site for a home improvement store and the other as site for new movie theater complex. If the land is used to develop a home improvement store the fair value was estimated to be $6 million and alternatively, the land for a movie theater was estimated to be $5 million. The land is currently zoned for both purposes. Mountain View intends to use the property to develop a movie theater with restaurants.

Which value should Mountain View use in its financial statements for the land and why?