Question

Chisenhall Company purchased land and a building on January 1, 2014. Management’s best estimate of the value of the land was $100,000 and of the building $200,000. However, management told the accounting department to record the land at $220,000 and the building at $80,000. The building is being depreciated on a straight-line basis over 15 years with no salvage value. Why do you suppose management requested this accounting treatment? Is it ethical?



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  • CreatedJanuary 30, 2014
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