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28.38 Oceanside Developments owns a piece of land it had purchased in 2019 for $400,000. When they started to develop the land in 2020, they
28.38 Oceanside Developments owns a piece of land it had purchased in 2019 for $400,000. When they started to develop the land in 2020, they discovered that there were environmental problems with the land. It is now estimated to be worth only $150,000. Which of the following is the correct way to account for this change in value? Select one: O a. No accounting is necessary because the land is recorded at its historical cost, not its market value b. The land account should be written down to $150,000 and an impairement loss recognized, O c. The land should be written off completely because now the company cannot use it for the purpose they intended to O d. The land should be depreciated at a new rate to reflect the decline in its value
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