The answer depends on the accounting standards that are being followed. Under US GMP$,$ the first biece of land would likely remain at $$100,000$ and the second would likely be written down to $$75,000.$ This is a good representation of conservatism and the historical cost principle. Under IFRS, there is a better possibility that each piece of land could be written up or down to its current market value.

What do you think are the main pros and cons of both historical cost and conservatism in this particular case?