Iris Company purchased land and a buidling on January 1, 2014. Management's best estimate of the value of the land was $ 100,000 and of the building $ 250,000. However, management told the accounting department to record the land at $ 230,000 and the building at $ 120,000. The building is being depreciated on a straight-line basis over 20 years with no salvage value.

Instructions

(a)	Why do you suppose management requested this accounting treatment?

(b)	What is the impact on the financial statements of their request?

(c)	Is their requrest ethical? Why or why not?