Waiting for answer This question has not been answered yet. You can hire a professional tutor to get the answer.
QUESTION
Accounting help please
Western Bank & Trust purchased land and a building for the lump sum of $3,000,000. To get the maximum tax deduction, Western allocated 90% of the purchase price tot he building and only 10% to the land. A more realistic allocation would have been 70% to the building and 30% to the land.
Requirements
- Explain the tax advantage of allocating too much to the building and too little to the land.
- Was Western's allocation ethical? If so, state why. If not, why not? Identify who was harmed.
Instructions: Your initial response should be no less than 250 words.
