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Problem -
a. Land with an assessed value of $750,000 for property tax purposes is acquired by a business for $900,000. Ten years later, the plot of land has an assessed value of $1,200,000 and the business receives an offer of $2,000,000 for it. Should the monetary amount assigned to the land in the business records now be increased?
b. Assuming that the land acquired in (a) was sold for $2,125,000, how would the various elements of the accounting equation be affected?
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