Final answer:
The fair value for specialized items of PPE is Market Value.
Step-by-step explanation:
The fair value for specialized items of PPE is Market Value.
Market value refers to the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. It represents the current value of the specialized items of PPE based on market conditions.
For example, if a company owns specialized machinery that is not commonly available in the market, the fair value of that machinery would be the price that a potential buyer is willing to pay for it.