Western Bank & Trust purchased land and a building for the lump sum
of $3 million dollars. To get the maximum tax deduction, Western
allocated 90% of the purchase price to the building and only 10% to the
land. A more realistic allocation would have been 70% to the building
and 30% to the land.
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, state why not. Identify who was