Explanation:

The gross book value of a fixed asset is its historical cost. Let's break down the answer to understand why it is the correct option.

1. Historical Cost:
The historical cost refers to the original cost incurred by a business to acquire a fixed asset. It includes all costs necessary to bring the asset to its present location and condition for its intended use. This cost includes the purchase price of the asset, transportation costs, installation charges, and any other costs directly attributable to acquiring and preparing the asset for use.

2. Gross Book Value:
The gross book value of a fixed asset is the original cost of the asset before any deductions for depreciation or impairment. It represents the total value of the asset as recorded in the accounting records of the company. It is the amount at which the asset is initially recorded on the balance sheet.

3. Depreciation:
Depreciation is the systematic allocation of the cost of a fixed asset over its useful life. It is a non-cash expense that reduces the value of the asset over time. While depreciation is used to reflect the wear and tear and obsolescence of the asset, it is not considered when determining the gross book value. The gross book value is calculated before depreciation is applied.

Conclusion:
In conclusion, the gross book value of a fixed asset is its historical cost. It represents the original cost incurred to acquire the asset and does not take into account any deductions for depreciation or impairment. This value is recorded on the balance sheet and provides information about the initial investment made by the business in the asset.