Land was acquired in 2021 for a future building site at a cost of $40,900. The assessed valuation for tax purposes is $27,700, a qualified appraiser placed its value at $48,300, and a recent firm offer for the land was for a cash payment of $45,400. The land should be reported in the financial statements at:

A. $40,900.

B. $45,400.

C. $27,700.

D. $48,300.