(Considering different ways of measuring, LO 4) For each of the following situations, explain which method of valuing the item in question would be most useful:

a. You lost your favourite CD and want to get another copy of it.

b. You need to get some money fast and you have nothing in your bank account, so you are thinking of selling your car.

c. You purchased a DVD player from a store that had a special sale offering to let you “use it for a year and if you don’t like it you can get your money back.” You decide you don’t like the DVD player.

d. Your 1995 Ford Mustang was stolen and you are looking to get another one just like it.

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Measurement method Cost Replacement cost Replacement cost new Net realizable value 4 Explanation of the method What you paid for the item. What it would cost to replace the item with an identical item in the same condition. What it would cost to replace the item with an identical item that is new. What the item could be sold for now.