A major stockholder of a corporation is concerned about the management of her firm, since the com

A major stockholder of a corporation is concerned about the management of her firm, since the company has land with a value of $8,000,000 being used for parking lots. The controller is aware of the “stewardship function” of accounting and checks the invoices. He finds that the cost of the land was

$400,000 and there was no possibility of dishonesty. The controller reports this finding back to the stockholder. Comment on the information presented to the stockholder.