Land was acquired in 2006 for a future building site at a cost of $40,000. The assessed valuation for tax purposes is $27,000, a qualified appraiser placed its value a $48,000, and a recent firm offer for the land was for a cash payment of $46,000. The land should be reported in the financial statements at: a) $40,000. b) $27,000. c) $46,000. d) $48,000.