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Unformatted text preview: several years. Acme itself could be one of them. When they sell off the plant assets, they will have to purchase replacements. This could be very costly which will negatively affect their cash flow. Other taxpayers and the federal government will be harmed as well. Acme will end up paying fewer taxes to the government which will cause these other taxpayers to pay more. My professional responsibility as a CPA is to maintain a certain standard of conduct and protect the public by following strict ethical rules. If I come across anything I think is unethical, it is my duty to report it immediately to higher management and the Board of Directors. In this situation, I do not believe Acme is acting unethically. They are just trying to reduce the amount of income taxes paid through a perfectly legal approach. 1...
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This note was uploaded on 03/09/2012 for the course ACCT 3021 taught by Professor Delaune during the Spring '06 term at LSU.
- Spring '06