Reed Osborn is the president and chief operating officer of MoneyScope Corporation, a developer of personal financial planning software. During the past year, MoneyScope Corporation was forced to sell 10 acres of land to the city of Houston for expansion of a freeway exit. The corporation fought the sale; but after condemnation hearings, a judge ordered it to sell the land. Because of the land’s location and the fact that MoneyScope Corporation had purchased the land over 15 years ago, the corporation recorded a $0.20-per-share gain on the sale. Always looking to turn a negative into a positive, Reed has decided to announce the corporation’s earnings per share of $1.05, without identifying the $0.20 impact of selling the land. Although he will retain majority ownership, Reed plans on selling 20,000 of his shares in the corporation sometime within the next month.
Are Reed’s plans to announce earnings per share of $1.05 without mentioning the $0.20 impact of selling the land ethical and professional?