Casper Chemical Recently Acquired a Building Located on Two Acres

question 21

Essay

Casper Chemical recently acquired a building located on two acres of land for a lump-sum price of $3.2 million. In your job as assistant controller, you determined the allocation of the price using the relative fair values to be $1 million and $2.2 million for the land and building, respectively. When you reported these initial values to Jake Reese, the company's controller, he told you to change the allocation to $1.5 million for the land and $1.7 million for the building. When you asked him why the change, he explained that the company is having a difficult time meeting profitability goals and that his proposed allocation will help the bottom line for future years.
Required:
1. How will the controller's proposed allocation help the bottom line in future years?
2. Discuss the ethical dilemma faced by the assistant controller.

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Definitions:

Androcentric Biases

A bias or perspective that places male experiences and norms at the center, often marginalizing or disregarding women and other genders.

Womanism

A social theory and movement that centers on the experiences and perspectives of Black women, emphasizing inclusivity and equity across race and gender.

Devalued Qualities

Traits or characteristics that are not highly regarded, appreciated, or considered of significant worth in a certain context or by society.

Minority Communities

Groups of people who share common ethnic, racial, or cultural backgrounds and are represented in smaller numbers within a larger population or society.