Under GAAP, companies may apply various valuation methods in recording transactions and preparing financial statements, for example historical cost, fair market, replacement, depreciated or amortized cost,Lower-of-cost-or-market; Present value, Future cost, Actuarially estimated present value,etc. For each basis in your discussion,cover its definition,describe in general termswhen it is proper to use it, and critique the advantages and disadvantages of its use.Addressthe issue of why we should (or should not) use so many different valuationbases in GAAP. Is it accurate to claim that GAAP is still based on historical cost?