[aubreynicole18]

glover enterprises receives a donation of 100 acres of and from the city of New Orleans as an incentive for Glover to locate a new plant in New Orleans. The grant stipulates that Glover Enterprises must build a manufacturing plant and a warehouse containing at least 250,000sq ft. In addition, at least 20 acres must be used as parking lot. All construction must be completed within 3 yrs. At the time of the donation, the fair market value of the land was $2,200,000. On Dec 31, the year-end date for Glover Enterprises, the fair market value of the land had fallen to $2,000,000 and no construction had yet begun. How do you record this?