Choice "A" is correct. Net realizable value is the appropriate measurement basis for equipment included in Brooks' Dec. 31 balance sheet, because of the decision to end operations and quickly (3 months) dispose of its assets.
Choice "c" is incorrect. Historical cost is appropriate if operations were continuing.
Choice "d" is incorrect. Current reproduction cost (producing new and substantially identical assets, at current prices, adjusted for depreciation to date) is appropriate in optional supplemental price level financial statements.
Choice "b" is incorrect. Current replacement cost (acquiring new and substantially equivalent property at current prices, adjusted for estimated depreciation since acquisition) is appropriate in optional supplemental price level financial statements.