Harrod's Inc. purchased land for 55,000 in 2004. At December 31, 2014, an appraisal determined the fair value of the land is 65,000. If Harrod's follows the historical cost principle, in the 2014 financial statements, the land will be reported at

a. 55,000 on the statement of financial position.

b. 65,000 on the statement of financial position.

c. 55,000 on the income statement.

d. 65,000 on the income statement.