Effect of inventory valuation on net income. Selby Corporation, a commercial real estate developer, acquired a tract of land on September. Year 6 for $240,000. Forest fires on December. Year 6, reduced the value of this land to SI 60.000. In December. Year 7. a local hospital announced plans to build a new hospital near the land, increasing its market value to $420,000.

Selby Corporation sold this land in February, Year 8 for $460,000. Compute the amount of income or loss related to this land for Year 6. Year 7. and Year 8 and for the three years as a whole, assuming that the firm reports the land inventory on its balance sheet using ( 1 ) acquisition cost. (2) lower of cost or market, and (3) market value.