Land Baron Corp. (LBC) owns a parcel of undeveloped land that it acquired in Year 1. Previously, it measured this asset using the cost model. On December 31, Year 4, its year end, the company decided to change its accounting policy and measure this asset using the revaluation model to provide more relevant information to its users. LBC's books for Year 4 have not yet been closed. Pertinent details follow: price paid to acquire land  $425,000 legal fees directly associated with the purchase of land  $5,000 fair value of land, December 31, Year 4  $490,000 fair value of land, previous year ends  unknown income tax rate  40% 

What amount will LBC debit its land account on December 31, Year 4, to account for this change in accounting policy?  

Answer rating: 100% (QA)

To account for the change in accounting policy from the cost model to the revaluation model Lan... View the full answer