On December 31, 20X8, Mr. and Mrs. Williams owned a parcel of land held as an investment. The land was purchased for $40,000 in 20X6, and was encumbered by a mortgage with a principal balance of $30,000 at December 31, 20X8. On this date the fair value of the land was $75,000. In the Williams' December 31, 20X8, personal statement of financial condition, at what amount should the land investment and mortgage payable be reported? LandInvestmentMortgagePayableA)$10,000 $0 B)$75,000 $30,000 C)$40,000 $30,000 D)$45,000 $0
A. Option A
B. Option B
C. Option C
D. Option D
Answer: B
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