Current Attempt in Progress

Wildhorse Company purchased land and a building on January $1,2027.$ Management's best estimate of the value of the land was $$122,000$ and of the building $$244,000.$ However, management told the accounting department to record the land at $$268,400$ and the building at $$97,600.$ The building is being depreciated on a straight$-$line basis over $15$ years with no salvage value.

Calculate the annual change in net income

$

Why do you suppose management requested this accounting treatment? Is it ethical?

It is likely that management requested this accounting treatment $$ and this practice is $$

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