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Unformatted text preview: managed to adhere to the Cost Principle (however crookedly) by recording the asset at its actual cost. He really paid $500,000 to acquire the franchise back. Unfortunately for potential investors, they will be paying a much higher price for stock in the corporation based on inflated financial information. In actuality, the franchise is only worth $50,000, and some poor schmuck will end up paying $500,000 because Sewell used unethical tactics to falsely portray the corporation in a superior financial position....
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This note was uploaded on 10/18/2011 for the course LITERATURE LIT 101 taught by Professor Stault during the Spring '11 term at Albany State University.
- Spring '11