Question: Please help with this problem: Case 9-1 Donated Assets The City of Martinsville donated land to Essex Company. The fair value of the land was

Please help with this problem:

Case 9-1 Donated Assets The City of Martinsville donated land to Essex Company. The fair value of the land was $100,000. The land had cost the city $45,000.

Assume that immediately before the donation, Essex had assets totaling $800,000 and

liabilities totaling $350,000. Compare the financial statement effects of the FASB

requirement with previous practice. For example, how would EPS or ratios such as debt

to equity be affected

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