Sarasota Co. purchased land 40 years ago for $200,000. They paid $25,000 as a down payment and borrowed the remaining $175,000. The land was appraised 2 years ago at $800,000. Sarasota believes that at December 31 of the current year, the land is worth $1,200,000.

At what amount should Sarasota report the land on its balance sheet as of December 31 of the current year?