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6. The chief operating officer (COO) of a company instructs Paul Peters to include several unmarked sealed boxes in a year-end count of physical inventories.
6. The chief operating officer (COO) of a company instructs Paul Peters to include several unmarked sealed boxes in a year-end count of physical inventories. The COO tells Paul that the contents-valued at $2,000,000-will be used to manufacture an order for a special customer. Paul complied with the COO's instructions and the COO received a substantial year-end bonus that was based on a percentage of gross margin. Two months later, Paul found out that the sealed boxes were empty. Which of the following statements best describes this situation? A) year end inventory was fraudulently overstated but net income was understated so there is nothing unethical about the situation cost of goods available for sale was unaffected so there is nothing unethical ) about the situation C) gross margin was unaffected by the transaction so there is nothing wrong with what the COO and John did. D) the COO behaved unethically, and Paul Peters may have been negligent
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