Larry Smith, president of Smith Company, has instructed Ron Rivera, the head of the accounting department for Smith Company, to report the companys land in the companys accounting reports at its market value of $170,000 instead of its cost of $100,000. Smith says, Showing the land at $170,000 will make our company look like a better investment when we try

Chapter 1, Exercises #3

Larry Smith, president of Smith Company, has instructed Ron Rivera, the head of the accounting department for Smith Company, to report the company’s land in the company’s accounting reports at its market value of $170,000 instead of its cost of $100,000. Smith 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 Ron Rivera, identifying the 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,...