You have been hired as an accounting consultant to review the financial reporting policies of Parker Company as it enters merger negotiations with an interested buyer.Of particular interest is the way in which Parker accounts for its property, plant, and equipment.When rumors of possible mergers began several years ago, the company's management periodically began using independent valuation experts to appraise fair market values for the company's net assets.As a result of these analysis, management determined that its long-term productive assets had appraised market values that were significantly higher than their book values.Citing these appraisals, management increased the company's assets up to appraised values in order "to provide investors and creditors with the most relevant information possible and to be consistent with the FASB'sincreasing use of fair value measurement.Question:"How does this decision create the potential for unethical reporting by Parker?"Add-on question:What is the difference between, cost, book value, and fair market value?