Charlie brown controller for the kelly corporation is

Reference no: EM13481430

Charlie Brown, controller for the Kelly Corporation, is preparing the company's income statement at year-end. He notes that the company lost a considerable sum on the sale of some equipment it had decided to replace. Since the company has sold equipment routinely in the past, Brown knows the losses cannot be reported as extraordinary. He also does not want to highlight it as a material loss since he feels that will reflect poorly on him and the company. He reasons that if the company had recorded more depreciation during the assets' lives, the losses would not be so great. Since depreciation is included among the company's operating expenses, he wants to report the losses along with the company's expenses , where he hopes it will not be noticed.

What are the ethical issues involved?

What should Brown do?

Reference no: EM13481430

Questions Cloud

The following data pertain to the first week of operations : the following data pertain to the first week of operations during the month of

Examine pepsico incs consolidated balance sheet on p a6 in : examine pepsico inc.s consolidated balance sheet on p. a6 in appendix a of financial accounting especially its current

Use the following items to determine the total assets total : use the following items to determine the total assets total liabilities net worth total cash inflows and total cash

Explain the rationale for recognizing costs as expenses at : an accountant must be familiar with the concepts involved in determining earnings of a company. the amount of earnings

Charlie brown controller for the kelly corporation is : charlie brown controller for the kelly corporation is preparing the companys income statement at year-end. he notes

How would the following errors affect the account balances : how would the following errors affect the account balances and the basic accounting equation assets liabilities

Seamark buys 300000 of eiders 8 five-year bonds payable at : seamark buys 300000 of eiders 8 five-year bonds payable at par value on september 1. interest payments are made

Timber ridge corporation was organized on january 1 2013 : the following information is available for grey goose inc.beginning retained

The board of directors of a corporation are elected by the : the board of directors of a corporation are elected by the corporate registrar. b. are responsible for day-to-day

User Account

All Pages