[shawnl112]

Please explain

In Year 1, Palm City acquired, through forfeiture as a result of nonpayment of property taxes, a parcel of land that the city intends to use as a parking lot for general governmental purposes. The total amount of taxes, liens, and other costs incurred by Palm incidental to acquiring ownership and perfecting title was $20,000. The land’s fair market value at the forfeiture date was $60,000. What amount should Palm City capitalized relative to its governmental activities?

a. $20,000

b. $60,000

c. $0

d. $80,000