7. A company purchases land by paying cash of $17,000 and promising to pay $125,000 over the next 10 years. Other information that is available to the controller is: The land was originally acquired by the seller for $74,000 The seller is offering to sell the land for $160,000 The purchasing company thinks the market value is actually $197,000 The company properly recognizes the purchase of the land at $142,000. Describe why $142,000 is the correct amount under U.S. generally accepted accounting principles (GAAP).