Answer:
whichever is lower
Explanation:
Any assets cost is recorded at present value or fair value, whichever is lesser. This is analogous to stock being valued at cost price or sale price, whichever is less.
The reason behind is Prudence or Conservatism principle of accounting. The principle states that anticipated losses should be accounted for, but the anticipated gains should not be accounted for.
So, the asset value is recorded at the least value of the alternative valuations.
