In Year 2, the Denim Company bought an acre of land that cost $16,800. In Year 5, another company purchased a nearby acre of land for $29,800 and a different company purchased another nearby acre of land for $27,800. As a result, an appraiser estimated that the acre owned by Denim had increased in value to $28,800. If Denim prepares a balance sheet at the end of Year 5, the acre of land that it owns should be reported at:

Multiple Choice

• $27,800.

• $16,800.

• $29,800.

• The average of all of the amounts.