On January 1, 2012, Peet Development Company paid $325,000 in cash for a parcel of land to be used as the new office building site. During March, the company petitioned the city council to rezone the area for professional office buildings. The city council refused, preferring to maintain the area as a residential zone. After nine months of negotiation, Peet Development convinced the council to rezone the property for commercial use, thus raising its value to $475,000. For accounting purposes, what value should be used to record the transaction on January 1, 2012? At what value would the property be reported at year-end, after the city council rezoning? Explain why accountants use historical costs to record transactions