United Jersey Bank of Princeton purchased land and a building for the lump sum of $6.0 million.

Question:

United Jersey Bank of Princeton purchased land and a building for the lump sum of $6.0 million. To get the maximum tax deduction, the banks managers allocated 80% of the purchase price to the building and only 20% to the land. A more realistic allocation would have been 60% to the building and 40% to the land.

Requirements
1. What is the ethical issue in this situation?
2. Who are the ? What are the possible consequences to each?
3. Analyze the alternatives from the following standpoints: (a) economic, (b) legal, and (c) ethical.
4. What would you do? How would you justify your decision?

Stakeholders
A person, group or organization that has interest or concern in an organization. Stakeholders can affect or be affected by the organization's actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees,...