High on the Hog Company operates large swine feedlots in Iowa, Illinois, and Missouri. The company planned to expand its operations and purchased 160 acres near Rankin, Illinois, on which to build a new large-scale swine lot. The cost of the acreage was $618,000 and construction costs of $234,000 had been incurred when it scrapped the project. Due to negative public sentiment and the high probability that new state laws would be enacted to prohibit operating on the lot, High on the Hog Company sold the facility for $580,000. In a letter to the Board of Directors explain the accounting consequences of the actions described above. Be thorough and include adequate professional support.