The specific price of a parcel of land during a period of inflation increased more slowly than inflation. Which accounting method will give the highest value for the land? HCND, HCCD, CCCD, or CCND?

The answer was HCCD (hist cost, nominal dollar).

I understand the nominal dollar (I.E. inflation), but why would historic cost give a higher value than current cost (which is the lower of current cost or recoverable value)?

thanks all! gv

clearly i am now answering myself - first sorry for the confusion, the answer was historical cost, current dollar (not nominal as i wrote in the parenthetical).

Here is how i understand it, although i think that a link to a real-world financial schedule or a JE would make this clearer.

If we were to use current cost / constant dollar, you would have to reduce the amount of "constant dollarizing" (i.e. the CPI applied) since you would have already adjusted the land partly using the "current costing" (i.e. the PPP), for example the land was bought in 1972 and has appreciated 105% in fair value over that time to today, meanwhile the value of the CPI has actually appreciated 110% over the same period of time. I assume that to use the current dollar / constant method I could not just multiply the 105% times the 110% as originally thought, but in fact have to use a lower CPI that assumes i am using a fairly valued asset (appreciated land prices) to grow my CPI from. HCCD could only be higher if it is somehow utilizing the pure CPI impact at 110% throughout this time, and we're saying the CCCD approach is translating into a lower number than this...yikes.