The president of your firm Lesky and Lesky has little background in accounting.
Today he walked into your office and said," A year ago we brought a piece of land for 100,000. This year inflation has driven prices up by 6%, and an appraiser just told us we can resell the land for 115,000. Yet our balance sheet still shows it at 100,000. It should be valued at 115,000. That's what it;s worth. Or, a minimum, at 106,000."
Respond to this statement with specific reference to the accounting principles applicable in this situation.