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  • It Is The End of 2016 and You Are An

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    Doreen
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    The president of Stone Company asks the accountant for advice on reporting property, plant, and equipment at its recently appraised value of $400,000, rather than its $300,000 book value, in order to improperly increase reported earnings and mislead shareholders about the company's performance. The accountant must advise the president that revaluing assets and reporting a revaluation gain would violate accounting principles.

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    It is the End of 2016 and You Are An

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    The president of Stone Company asks the accountant for advice on reporting property, plant, and equipment at its recently appraised value of $400,000, rather than its $300,000 book value, in order to improperly increase reported earnings and mislead shareholders about the company's performance. The accountant must advise the president that revaluing assets and reporting a revaluation gain would violate accounting principles.

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    © All Rights Reserved
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    5 views1 page

    It Is The End of 2016 and You Are An

    Uploaded by

    Doreen
    The president of Stone Company asks the accountant for advice on reporting property, plant, and equipment at its recently appraised value of $400,000, rather than its $300,000 book value, in order to improperly increase reported earnings and mislead shareholders about the company's performance. The accountant must advise the president that revaluing assets and reporting a revaluation gain would violate accounting principles.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    (SOLVED) It is the end of 2016 and you are an

    It is the end of 2016 and you are an accountant for Stone Company. During 2016, sales of the
    company’s products slumped and the company’s earnings are expected to be much less than
    those of 2015. The president comes to you with an idea. He says, “Our Company’s property,
    plant, and equipment cost $30
    GET THE ANSWER>> https://solutionlly.com/downloads/it-is-the-end-of-2016-and-you-are-an
    It is the end of 2016 and you are an accountant for Stone Company. During 2016, sales of the
    company’s products slumped and the company’s earnings are expected to be much less than
    those of 2015. The president comes to you with an idea. He says, “Our Company’s property,
    plant, and equipment cost $300,000, and that is the amount we usually report on our balance
    sheet. However, I just had these assets appraised by an independent appraiser, and she says
    they are worth $400,000. I think that the company should report the property, plant, and
    equipment at this amount on its December 31, 2016, balance sheet and should report the
    $100,000 increase in value as a gain on the 2016 income statement. If we use this approach, it
    will show how much our company is really worth and increase our earnings. This will make our
    shareholders happy. What do you think?”Required:Prepare a written response to the
    president.View Solution:
    It is the end of 2016 and you are an
    GET THE ANSWER>> https://solutionlly.com/downloads/it-is-the-end-of-2016-and-you-are-an

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