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26 Feb 2018
Western Bank & Trust purchased land and a building for the lumpsum of $3 million dollars. To get the maximum tax deduction,Western allocated 90% of the purchase price to the building andonly 10% to the land. A more realistic allocation would have been70% to the building and 30% to the land.
Explain the tax advantage of allocating too much to the buildingand too little to the land.Was Western's allocation ethical? If so,state why. If not, state why not. Identify who was harmed.
Western Bank & Trust purchased land and a building for the lumpsum of $3 million dollars. To get the maximum tax deduction,Western allocated 90% of the purchase price to the building andonly 10% to the land. A more realistic allocation would have been70% to the building and 30% to the land.
Explain the tax advantage of allocating too much to the buildingand too little to the land.Was Western's allocation ethical? If so,state why. If not, state why not. Identify who was harmed.
Irving HeathcoteLv2
26 Feb 2018
