CA10-7 (Cost of Land vs. BuildingEthics) Tones Company purchased a warehouse in a downtown district where land values are rapidly increasing.
CA10-7 (Cost of Land vs. Building—Ethics) Tones Company purchased a warehouse in a downtown districtwhere land values are rapidly increasing. Gerald Carter, controller, and Wilma Ankara, financial vicepresident,are trying to allocate the cost of the purchase between the land and the building. Noting thatdepreciation can be taken only on the building, Carter favors placing a very high proportion of the coston the warehouse itself, thus […]
