Leon Manternach, president of Manternach Company, has instructed Carla Ruden, the head of the accounting department for

Question:

Leon Manternach, president of Manternach Company, has instructed Carla Ruden, the head of the accounting department for Manternach 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. Manternach 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 Carla Ruden, 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,...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial and managerial accounting

ISBN: 978-1118016114

1st edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

Question Posted: