Explain the ethics of given situation

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Reference no: EM131507856

Question: The manager of a hotel has the permission of the owner to have a new swimming pool built. The manager contacts three companies for bids to do this construction work. The highest bidder has told the manager that if his bid is accepted he will also install a swimming pool at the manager's house at a 25% discount. The manager agrees to accept this offer and justifies the decision by believing that the higher swimming pool cost to the hotel will provide a larger depreciation expense amount. This, in turn, will reduce the income tax that the hotel has to pay and therefore provide the hotel with more working capital. Discuss the ethics of this situation.

Reference no: EM131507856

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