a. Land with an assessed value of $300,000 for property tax purposes is acquired by a business for $500,000. Seven years later, the plot of land has an assessed value of $400,000 and the business receives an offer of $600,000 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 $600,000, how would the various elements of the accounting equation be affected?AppendixLO1