Please help with this problem:

Case 9-1 Donated Assets The City of Martinsville donated land to Essex Company. The fair value of the land was $100,000. The land had cost the city $45,000.

c.

Assume that immediately before the donation, Essex had assets totaling $800,000 and

liabilities totaling $350,000. Compare the financial statement effects of the FASB

requirement with previous practice. For example, how would EPS or ratios such as debt

to equity be affected