Exercise 1-3 (Essay)

Sam Cresco, president of Cresco Company, has instructed Sharon Gross, the head of the accounting department for Cresco Company, to report the companys land in the companys accounting reports at its fair value of $170,000 instead of its cost of $100,000. Cresco says, Showing the land at $170,000 will make our company look like a better investment when we try to attract new investors next month.

Explain the ethical situation involved for Sharon Gross, identifying the stakeholders and the alternatives.