2. Assume that the Grennell Farm had received a rim offer of $225,000 for 100 acres of the farm that would be used as the site of a new housing development. This development would have no effect on the use of the remaining acreage as a farm, and Ms. Grey planned to accept it. How would you account in the 2009 financial statements for the economic gain represented by this appreciation in land values?
3. Should Ms. Grey retain ownership of the farm?