Jill Motta, president of Motta Company, has instructed Linda Berger, the head of the accounting department for

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Jill Motta, president of Motta Company, has instructed Linda Berger, the head of the accounting department for Motta Company, to report the company’s land in the company’s accounting reports at its fair value of $170,000 instead of its cost of $100,000. Motta says, “Showing the land at $170,000 will make our company look like a better investment when we try to attract new investors next month.”

Instructions
Explain the ethical situation involved for Linda Berger, identifying the stakeholders and the alternatives.

Stakeholders
A person, group or organization that has interest or concern in an organization. Stakeholders can affect or be affected by the organization's actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees,...
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Accounting Principles

ISBN: 9781118566671

11th Edition

Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso

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