Reference no: EM132463841

Question problem 1: You are a staff accountant at Outrageous Corporation. The controller of the company is concerned that profits reported in the annual report will not meet the forecast made at the beginning of the year. He asks you to decrease the amount of annual depreciation on equipment by changing the estimated life to produce less depreciation expense. When you tell him that changing useful life solely to " manage" profits is not appropriate he tells you that " everyone does it . You realize that if you fail to do what your boss wants, you may receive an unfavorable performance evaluation. How do you resolve this dilemma? Please summarize your thoughts and reasoning.