Toyo Company is holding land that cost 900 000 for future
Toyo Company is holding land that cost $900,000 for future use. However, plans have changed and the company may not need the land in the foreseeable future. The president is concerned about the return on assets. Current net income is $425,000 and total assets are $3,500,000.

Required
a. Write a memo to the company president explaining the effect of disposing of the land, assuming that it has a current value of $1,500,000.
b. Write a memo to the company president explaining the effect of disposing of the land, assuming that it has a current value of $600,000.

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