C. The presidents suggestion is the best for the business and shareholders in the future and violates no ethical consideration. (INCORRECT)

Ethical Energy, Inc, earnings have not been as strong as expected and net income will fall short of last year's income. The company's employees receive a bonus only if the company's net income in the current year exceeds the net income from the past year. The President has an idea to ensure that net income will increase this year by capitalizing routine maintenance costs on equipment that were incurred this year. These costs were treated as an expense on the income statement. Which of the following statements is true? Multiple Choice As a president you are responsible to reward employees at any cost. According to GAAP, capitalizing routine maintenance costs as an asset is acceptable. The president's suggestion is the best for the business and shareholders in the future and violates no ethical consideration. The president's proposal is unethical and violates GAAP