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, etc. For each basis in your discussion, covering its definition, describe in general terms when it is proper to use it, and critique the advantages and disadvantages of its use. Address the issue of why we should (or should not) use so many different valuation bases in GAAP. Is it accurate to claim that GAAP is still based on historical cost?