On August 5 1979 Parker Corp purchased 20 acres of land for 500,000. The land has been held for a future plant site until the current date, December 31, 2018. On December 5, 2018, Overton Inc, puchased a 20 acres of land for 3,000,000 to be used for a distribution center. The Overton land is located next to the Park Corp. land, Thus both Corp and Overton Inc. nearly ldentical piece of land.

1. What are the valuations on land on the balance sheet of Parker Corp. and Overton Inc. using generally accepted accounting principles?

2. How might fair value accounting aid comparability when evaluating these two companies?