[GNC] Asset accounts: cost, or value?

[Marcus Winston]

I'm working on tracking asset values, costs, capital gains, and such, in
GnuCash. Specifically for my house (primary residence). I've sold one
house, and own a second.  I have created some accounts for this:

Assets:Fixed assets:House1
Assets:Fixed assets:House2
Liabilities:Mortgage
Income:Capital Gains:House
Expenses:Asset Purchase
Expenses:Asset Sell

I had thought that the Assets:Fixed assets:House would reflect the value of
the house. But after putting the purchase price of the house, and then
adding the costs to purchase (recording fees, appraisal, etc), I conclude
that the House account actually reflects the total cost of the house, and
not necessarily its value. First question: is that a correct view of the
Assets:Fixed assets:House1 account?

Since I've sold that house, I can add the costs-to-sell to the basis of
that house, and from there, calculate capital gains. And it's this that
leads me to think that the House1 asset account reflects the cost of the
house, and not the value of the house.

Regards,
MW