In connection with a review of the December 31, 19X5, financial statements of Quick Profits Real Estate, a nonpublic company, Hilton and Hilton, CPAs, noted that certain parcels of land were recorded at appraised value that exceeded cost by \(\$ 1,200,000\). Management of the company refused to change the financial statements to show the land at cost.

a. What courses of action should Hilton and Hilton consider?

b. If it is concluded that modification of their standard review report is appropriate for the land recorded at appraised value and the review is otherwise satisfactory, draft the report that Hilton and Hilton should issue.

c. If the company, in addition to recording land at appraised value, also changed the method of computing depreciation on its buildings from the double-declining balance method to the straight-line method, how would the review report of Hilton and Hilton be affected?