Oriole Company purchased land and a building on January 1, 2022. Management's best estimate of the value of the land was $110,000 and of the building $220,000. However, management told the accounting department to record the land at $242,000 and the building at $88,000. 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 to boost the net income not ethical ✓and this practice is

Oriole Company purchased land and a building on January 1, 2022. Management's best estimate of the value of the land was $110,000 and of the building $220,000. However, management told the accounting department to record the land at $242,000 and the building at $88,000. 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 to boost the net income not ethical ✓and this practice is

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Description: Oriole Company purchased land and a building on January 1, 2022. Management's best estimate of the value of the land was $110,000and of the building $220,000. However, management told the accounting department to record the land at $242,000 and the

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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