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can i get some help Short-1 CRITICAL THINKING Ethical Issue 25-1 ary Tan is the controller for Duck Associates, a property management company in Portland,
can i get some help
Short-1 CRITICAL THINKING Ethical Issue 25-1 ary Tan is the controller for Duck Associates, a property management company in Portland, Oregon. Each year, Tan and payroll clerk Toby Stock meet with the external auditors about payroll accounting. This year, the auditors suggest that Tan consider urcing Duck Associates's payroll accounting to a company specializing in payrol oll ssing services. This would allow Tan and her staff to focus on their primary onsibility: accounting for the properties under management. At present, payr payroll clerk Toby Stock and a bookkeeper who requires 1.5 employee positions spends half her time entering payroll data in the system. Tan considers this suggestion, and she lists the following items relating to out- sourcing payroll accounting: a. The current payroll software that was purchased for $4,000 three years ago would b. Duck Associates's bookkeeper would spend half her time preparing the weekly not be needed if payroll processing were outsourced. payroll input form that is given to the payroll processing service. She is paid $450 per week. c. Duck Associates would no longer need payroll clerk Toby Stock, whose annual sal- ary is $42,000. The payroll processing service would charge $2,000 per month Requirements I. Would outsourcing the payroll function increase or decrease Duck Associates's operating income? 2. lan believes that outsourcing payroll would simplify her job, but she does not like the prospect of having to lay off Stock, who has become a close personal friend. She does not believe there is another position available for Stock at his current salary. Can you think of other factors that might support keeping Stock, rather outsourcing payroll processing? How should each of the factors affect Ta decision if she wants to do what is best for Duck Associates and act ethically? factors affect Tan's eam Project 25-1 r stores. Suppose Ledfords is trying to decide
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