Fruit Company purchased land by paying $30,000 cash on the purchase date and agreeing to pay $10,000 for each of the next ten years beginning one-year from the purchase date. The companys incremental borrowing rate is 10%.

PVA (n=10, r=10)=6.1446; PV (n=10, r=10)=0.3855

The land reported on the balance sheet next year is closest to (assuming no impairment):