Bergen Bakery hires you to close the books for their first year of business. At the beginning of the year, they purchased the building for their bakery for $500,000. You estimate the useful life of the building to be 100 years after which it will be torn down, so you post an entry for $5,000 of depreciation for the year. You tell the owner the building now has a net book value of $495,000. The owner tells you that real estate has gone up in value this year and she thinks it is now worth $600,000. She asks you to adjust your numbers. In plain English, how do you respond to the owner?