Pioneer Company purchased land ami a building on .lanuarv I. 2005. Management's best estimate of the value
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Pioneer Company purchased land ami a building on .lanuarv I. 2005. Management's best estimate of the value of the land was $100,000 and of the building $200,000. Management told the accounting department to record the land at $180,000 and the building at $ 1 2().00(). The building is being depreciated on a straight line basis over 20 years with no salvage value. Why do you suppose management requested this accounting treatment? Is it ethical'.'
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Financial Accounting Text Only
ISBN: 9780006575405
5th Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel
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