Reference no: EM132958437

Question - In 2021, PPI introduced a new service called Rent Some Green to provide gardening space to people living in condos and apartment buildings. In the spring of 2021, PPI purchased a large plot of land for $50,000 and constructed a greenhouse on it for $35,000. The land was divided into separate gardening plots where "tenants" could plant and maintain a plot for an annual rental fee. By May 1, 2021, all plots were rented. Unfortunately, the gardens did not live up to the expectations of PPI or the tenants. The soil proved to be of low quality and several plots were too shady. Joan and Ellen are worried the asset is not worth what they paid for it. In July 2021, PPI spent $20,000 tilling and fertilizing to make the soil fit for gardening. This made the land useful for 15 additional years, and would provide rental fees of $3,000 per year. If PPI were to sell the land now or in the future, the market value would be $50,000 with no additional resale value for the greenhouse. What will be the imparement amount?