Any excess of fair value over book value attributable to land on the date of acquisition is to be:

A) allocated to other identifiable assets.
B) capitalized and amortized.
C) charged to Retained Earnings on the date of acquisition.
D) taken into income when the Land is sold.

Book Value

A financial measurement that calculates the value of a firm's equity as it appears on the balance sheet by subtracting liabilities from assets.

Fair Value

The estimated price at which an asset or liability could be traded in an orderly transaction between market participants at the measurement date.