Kowloon Group purchased land and a building on January 1, 2020. Managements best estimate of the value
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Kowloon Group purchased land and a building on January 1, 2020. Management’s best estimate of the value of the land was HK$1,000,000 and of the building HK$2,000,000. However, management told the accounting department to record the land at HK$2,250,000 and the building at HK$750,000. The building is being depreciated on a straight-line basis over 20 years with no residual value. Why do you suppose management requested this accounting treatment? Is it ethical?
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Related Book For
Accounting Principles
ISBN: 978-1119419617
IFRS global edition
Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt
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