Ethics Assignement -- Asset Acquisition and Cost Allocation Submit Assignment Due Monday by 11:59pm Points 20 Available after Nov 11 at 12am Submitting a file upload Ethics Assignment (20 pts.) Answer the questions below clearly and succinctly using complete sentences. You may use bullet points. In your answers, do not repeat the question, just put the number of the question and your response. You do not need to use numbers, but you may if that helps illustrate your point. The responses to all four questions should not exceed one page, single-spaced with one-inch margins. Save your responses to the questions in a Word file by uploading it to the "Assignments" tab in Canvas. This assignment is due by 11:59 pm, Monday, November 30. Name the file using your last name followed by your first initial (eg. WatkinsA) In November of 2020, the Paper Division of Dunder Mifflin Inc, purchased a piece of property in Scranton, Pennsylvania for $475,000. Other fees associated with the purchase, including closing costs and realtor commissions, totaled $25,000. The property contains land, a warehouse, and equipment. The Vice President of the Paper Division, Andy Bernard, and the Chief Financial Officer of Dunder Mitfin, Oscar Martinez, are discussing how the cost of the property should be allocated to the items purchased The VP of the Paper Division, Andy Bernard, wants to allocate most of the cost to the land (80% to land and 20% to equipment and warehouse), while the CFO argues that they should allocate the bulk of the purchase cost to the equipment and warehouse (80% equipment & warehouse, 20% land) because "no one wants property in Scranton. The same depreciation methods are used for financial reporting and tax purposes, and assume tax rates won't change over the foreseeable future, Andy Bernard is hoping to be promoted to the VP of the Printer Division, which is a much larger division than the Paper Division. A key determinant of whether Bernard will be promoted is the profitability of the Paper Division over the next two years Roll des ple labus uizzes onferences That eating Chart / Roll Call point. The responses to all four questions should not exceed one page, single-spaced with one-inch margins. Save your responses to the questions in a Word file by uploading it to the "Assignments" tabin Canvas. This assignment is due by 11:59 pm, Monday November 30, Name the file using your last name followed by your first initial (eg. WatkinsA). In November of 2020, the Paper Division of Dunder Mifflin Inc, purchased a piece of property in Scranton, Pennsylvania for $475,000. Other fees associated with the purchase, including closing costs and realtor commissions, totaled $25,000. The property contains land, a warehouse, and equipment. The Vice President of the Paper Division Andy Bernard, and the Chief Financial Officer of Dunder Miffin, Oscar Martinez, are discussing how the cost of the property should be allocated to the items purchased. The VP of the Paper Division Andy Bernard, wants to allocate most of the cost to the land (80% to land and 20% to equipment and warehouse), while the CFO argues that they should allocate the bulk of the purchase cost to the equipment and warehouse (80% equipment & warehouse, 20% land) because no one wants property in Scranton. The same depreciation methods are used for financial reporting and tax purposes and assume tax rates won't change over the foreseeable future Andy Bernard is hoping to be promoted to the VP of the Printer Division, which is a much larger division than the Paper Division. A key determinant of whether Bernard will be promoted is the profitability of the Paper Division over the next two years. 1. What are the advantages of allocating most of the cost to the land? Think about how this choice will affect the financial statements in the future. (6 pts.) 2. Why do you suppose Andy Bernard wants to allocate most of the cost to the land? (4 p.) 3. What is your recommendation for allocating the purchase costs to the assets? (6 pts.) 4. Assume the equipment has a useful life of 5 years and the warehouse has a useful life of 10 years. The company plans to sell the equipment after it has been fully deprecated and the land and warehouse will be sold after the warehouse is fully depreciated. How will this allocation decision affect ending Retained Earnings at the end of the 10th year, after the assets have been sold? (4 pts) Ethics Assignement -- Asset Acquisition and Cost Allocation Submit Assignment Due Monday by 11:59pm Points 20 Available after Nov 11 at 12am Submitting a file upload Ethics Assignment (20 pts.) Answer the questions below clearly and succinctly using complete sentences. You may use bullet points. In your answers, do not repeat the question, just put the number of the question and your response. You do not need to use numbers, but you may if that helps illustrate your point. The responses to all four questions should not exceed one page, single-spaced with one-inch margins. Save your responses to the questions in a Word file by uploading it to the "Assignments" tab in Canvas. This assignment is due by 11:59 pm, Monday, November 30. Name the file using your last name followed by your first initial (eg. WatkinsA) In November of 2020, the Paper Division of Dunder Mifflin Inc, purchased a piece of property in Scranton, Pennsylvania for $475,000. Other fees associated with the purchase, including closing costs and realtor commissions, totaled $25,000. The property contains land, a warehouse, and equipment. The Vice President of the Paper Division, Andy Bernard, and the Chief Financial Officer of Dunder Mitfin, Oscar Martinez, are discussing how the cost of the property should be allocated to the items purchased The VP of the Paper Division, Andy Bernard, wants to allocate most of the cost to the land (80% to land and 20% to equipment and warehouse), while the CFO argues that they should allocate the bulk of the purchase cost to the equipment and warehouse (80% equipment & warehouse, 20% land) because "no one wants property in Scranton. The same depreciation methods are used for financial reporting and tax purposes, and assume tax rates won't change over the foreseeable future, Andy Bernard is hoping to be promoted to the VP of the Printer Division, which is a much larger division than the Paper Division. A key determinant of whether Bernard will be promoted is the profitability of the Paper Division over the next two years Roll des ple labus uizzes onferences That eating Chart / Roll Call point. The responses to all four questions should not exceed one page, single-spaced with one-inch margins. Save your responses to the questions in a Word file by uploading it to the "Assignments" tabin Canvas. This assignment is due by 11:59 pm, Monday November 30, Name the file using your last name followed by your first initial (eg. WatkinsA). In November of 2020, the Paper Division of Dunder Mifflin Inc, purchased a piece of property in Scranton, Pennsylvania for $475,000. Other fees associated with the purchase, including closing costs and realtor commissions, totaled $25,000. The property contains land, a warehouse, and equipment. The Vice President of the Paper Division Andy Bernard, and the Chief Financial Officer of Dunder Miffin, Oscar Martinez, are discussing how the cost of the property should be allocated to the items purchased. The VP of the Paper Division Andy Bernard, wants to allocate most of the cost to the land (80% to land and 20% to equipment and warehouse), while the CFO argues that they should allocate the bulk of the purchase cost to the equipment and warehouse (80% equipment & warehouse, 20% land) because no one wants property in Scranton. The same depreciation methods are used for financial reporting and tax purposes and assume tax rates won't change over the foreseeable future Andy Bernard is hoping to be promoted to the VP of the Printer Division, which is a much larger division than the Paper Division. A key determinant of whether Bernard will be promoted is the profitability of the Paper Division over the next two years. 1. What are the advantages of allocating most of the cost to the land? Think about how this choice will affect the financial statements in the future. (6 pts.) 2. Why do you suppose Andy Bernard wants to allocate most of the cost to the land? (4 p.) 3. What is your recommendation for allocating the purchase costs to the assets? (6 pts.) 4. Assume the equipment has a useful life of 5 years and the warehouse has a useful life of 10 years. The company plans to sell the equipment after it has been fully deprecated and the land and warehouse will be sold after the warehouse is fully depreciated. How will this allocation decision affect ending Retained Earnings at the end of the 10th year, after the assets have been sold? (4 pts)