Land was acquired in 2021 for a future building site at a cost of $40,200. The assessed valuation for tax purposes is $28,300, a qualified appraiser placed its value at $48,500, 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:

Multiple Choice

• $28,300.

• $40,200.

• $48,500.

• $45,400.