On May 7, Carpet Barn Company offered to pay $105,000 for land that had a selling price of $125,000. On May 15, Carpet Barn accepted a counteroffer of $116,000. On June 5, the land was assessed at a value of $120,000 for property tax purposes. On December 10, Carpet Barn Company was offered $135,000 for the land by another company. a. At what value should the land be recorded in Carpet Barn Companys records? b. What accounting principle governs the accounting for this transaction?