Response to the following problem:
a. Land with an assumed value of $400,000 for property tax purposes is acquired by a business for $525,000. Ten years later, the plot of land has an assessed value of $700,000 and the business receives an offer of $1,000,000 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 $1,000,000, how would the various elements of the accounting equation be affected?