what would you do in the subsequent ethical


What would you do in the subsequent ethical dilemma:

Your corporation is suffering declining sales of its principal product. The president instruct controller to lengthen asset lives to reduce depreciation expense. A processing line of automated plastic extruding equipment purchased for 6 million, was initially estimated to have a useful life of 8 years and a salvage of 600 thousand. Depreciation has been recorded for 2 years on that basis. The president wants the predictable life changed to 12 years total. The controller hesitant to make the change, believing it is unethical. The president says "hey, the life is only an estimate, and I've heard that our competition uses a 12-year life on their product equipment."

What would you do?

Request for Solution File

Ask an Expert for Answer!!
Cost Accounting: what would you do in the subsequent ethical
Reference No:- TGS0484364

Expected delivery within 24 Hours