Property, plant, and equipment, net of depreciation $10,000,000 rather than Property, plant, and equipment Less: Accumulated depreciation $50,000,000 40,000,000 Net book value $10,000,000
S (Presentation of Property, Plant, and Equipment) Carol Keene, corporate comptroller for Dumaine Industries, is trying to decide how to present “Property, plant, and equipment” in the balance sheet. She realizes that the
statement of cash flows will show that the company made a significant investment in purchasing new equipment this year, but overall she knows the company’s plant assets are rather old. She feels that she can disclose one figure titled “Property, plant, and equipment, net of
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Instructions
Answer the following questions.
(a) What are the ethical issues involved?
(b) What should Keene do?
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