Assume That the City Foreclosed on a Piece of Property

Assume that the city foreclosed on a piece of property it intends to keep for a government use. The property has an estimated fair market value (and acquisition value) of $5,000. It has an assessed value for taxes of $4,000. The outstanding amount of taxes and penalties due on the property totals $3,500. Normally, the city would value the foreclosed property at

A) $0.
B) $3,500.
C) $4,000.
D) $5,000.