Answer:
The land should be reported in the financial statement at $40,800
Explanation:
At the time the fixed asset is being recorded, it should be recorded at the purchase cost or historical price.
Since the land was purchased at $40,800 according to the question, also it is assessed for tax purpose at $27,900 and was valued at $48,900 by other appraisers including an offer of cash payment of $44,200.
But at the time of recording, the balance sheet would show at the price of $40,800
