A well-established company with significant investment in high quality land and buildings has consistently applied the cost model in measuring its property, plant and equipment.

Which of the following statements is true?

Group of answer choices

ROE is most likely overstated, but ROA is most likely understated.

ROE is most likely understated, but ROA is most likely overstated.

Both ROE and ROA are most likely overstated.

Both ROE and ROA are most likely understated.