The Queensbury Corporation was founded in 1947 on a decommissioned military installation that had been purchased from the U.S. government for a price of $1. Today, that same land carries a fair market value of $70 million. Consistent with the historical cost principle, The Queensbury Corporation continues to value the land at its original purchase price of $1 plus the cost of any improvements (such as roadways, lights, and drainage). 

Discuss the financial statement problems created by the historical cost principle for entities like The Queensbury Corporation that have significant investments in long-lived appreciating assets (such as land). Should these companies be allowed to revalue these assets? Why? How would a land revaluation be reflected in the financial statements?