Larry Raborn is executive vice president of Quality Bank. Active in community affairs, Raborn serves on the

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Larry Raborn is executive vice president of Quality Bank. Active in community affairs, Raborn serves on the board of directors of The Salvation Army. The Salvation Army is expanding rapidly and is considering relocating. At a recent meeting, The Salvation Army decided to buy 200 acres of land on the edge of town. The owner of the property is Freda Rader, a major depositor in Quality Bank. Rader is completing a bitter divorce, and Raborn knows that Rader is eager to sell her property. In view of Rader's difficult situation, Raborn believes Rader would accept a low offer for the land. Realtors have appraised the property at $2.2 million.
Required
Apply the ethical judgment framework outlined in the chapter to help Raborn decide what role he should play in The Salvation Army's attempt to buy the land from Rader.
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Financial Accounting

ISBN: 978-0135012840

7th edition

Authors: Walter T. Harrison, Charles T. Horngren

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