Maren Washington is the controller for Moab Company. Moab owns a building that is no longer used in Moab$$s production process. Moab is able to use the building as a storage facility.

Because it is no longer used in Maren$$s production process, Maren suspects that the building has declined in value substantially and permanently. However, the building is still reported in Moab$$s balance sheet at its depreciated book value based on the original purchase cost.

According to the concept of accounting CONSERVATISM, what accounting action should Maren take with respect to this building?

Have the building appraised immediately and record a loss for the difference between the building$$s recorded value and its lower current market value.

Revise the depreciation assumptions used for the building so that annual depreciation expense is reduced. This will reflect the change in the way the building is used.

Carefully monitor the building to see if there may have been a reduction in the building$$s useful life for depreciation purposes. If there has, then increase depreciation expense gradually in the future.

Continue to report the building in the balance sheet at its depreciated book value. No loss is to be recorded on a decline in the value of the building until the building is actually sold.