Unit 9 [114: Accounting I] Assignment 2: Ethics writing complete solutions correct answers key
Unit 9 [114: Accounting I] Assignment 2: Ethics writing complete solutions correct answers keyAssignment 2 of 2: Ethics Writing AssignmentEthics play a vital role in business and in the accounting profession. Here is an opportunity to connect you current learning about inventory with the profession’s commitment to ethics.BYP6-7: R. J. Graziano Wholesale Corp. uses the LIFO method of inventory costing. In the current year, profit at R. J. Graziano is running unusually high. The corporate tax rate is also high this year, but it is scheduled to decline significantly next year. In an effort to lower the current year’s net income and to take advantage of the changing income tax rate, the president of R. J. Graziano Wholesale instructs the plant accountant to recommend to the purchasing department a large purchase of inventory for delivery 3 days before the end of the year. The price of the inventory to be purchased has doubled during the year, and the purchase will represent a major portion of the ending inventory value.Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2014). Accounting principles (12th ed.). Hoboken, NJ: John Wiley & Sons, Inc.You are to write a 2 - 4 page paper. Use the ethics resources for accounting. Make sure to cite at least one source from those provided and reference them (in your separate reference page) following APA guidelines.Respond thoroughly to the following questions in your reflective essay:1. What is the effect of this transaction on this year and next year’s income statement and income tax expense? Why?2. If R. J. Graziano Wholesale had been using the FIFO method of inventory costing, would the president give the same directive?3. Should the plant accountant order the inventory purchase to lower income? What are the ethical implications of this order?4. Which Code of Conduct principle would you act on from the professional codes of conduct guiding ethical behavior in this field (Provide the name of the organization, and the code of conduct that pertains to why you act, and then provide the URL for your source)?Unit 9 [114: Accounting I] 25. Based on your chosen code of conduct principle(s), what would you do (step-by-step) in order to act in accordance with your chosen principle to address this situation? a. Hint: i. Remember that income taxes are an expense item that would be found on the income statement.ii. Make sure you take note that this is a LIFO (last in, first out inventory method).
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