oceanside development owns a piece of land it had purchased in 2019 for 400,000. when they started to develop the land in 2020, they discovered that there were environmental problems with the land. it is now estimated to be worth only 150,000. which of the following is the correct way to account for this?

no accounting is necessary because the land is recorded at its historical cost, not its market value

the land account should be written down to 150,000 and a loss recognized