Land Was Acquired in 2009 for a Future Building Site

Multiple Choice

Land was acquired in 2009 for a future building site at a cost of $40,000. The assessed valuation for tax purposes is $27,000, a qualified appraiser placed its value at $48,000, and a recent firm offer for the land was for a cash payment of $46,000. The land should be reported in the financial statements at:

A) $40,000.
B) $27,000.
C) $46,000.
D) $48,000.