The correct answer is: A. Historical cost.
Historical cost is the original amount paid for an asset. It is the most objective and verifiable measure of an asset’s value because it is based on actual transactions.
Current replacement value is the amount that would be paid to acquire a similar asset today. It is not as objective or verifiable as historical cost because it is based on estimates.
Net realizable value is the estimated selling price of an asset in the ordinary course of business less the estimated costs of completion and disposal. It is not as objective or verifiable as historical cost because it is based on estimates.
Inflated value is the amount that an asset is worth above its true value. It is not an objective or verifiable measure of an asset’s value.