a. Land with an assessed value of $250,000 for property tax purposes is acquired by a business for $375,000. Seven years later, the plot of land has an assessed value of $400,000 and the business receives an offer of $725,000 for it. Should the monetary amount assigned to the land in the business records now be increased?
b. Assuming that the land acquired in (a) was sold for $725,000, how would the various elements of the accounting equation be affected?