Deferred Taxes Ethics Case\ For this week's discussion, we will explore the following scenario:\ Shelly Deliman, CPA, is the newly hired director of corporate taxation for Anvil Corp., which is a publicly traded company. Ms. Deliman's first job with Anvil was the review of the company's accounting practices on deferred income taxes. In doing her review, she noted differences between tax and book depreciation methods that permitted Anvil to realize a sizable deferred tax liability on its balance sheet. As a result, Anvil paid very little in income taxes at that time.\ Deliman also discovered the Anvil has an explicit policy of selling off plant assets before they reversed in the deferred tax liability account. This policy, coupled with the rapid expansion of its plant asset base, allowed Anvil to "defer" all income taxes payable for several years, even though it always has reported positive earnings and an increasing EPS. Deliman checked with the legal department and found the policy to be legal, but she is uncomfortable with the ethics of it.\ Discuss the following issues:\ Why would Anvil have an explicit policy of selling plant assets before the temporary differences reversed in the deferred tax liability account?\ -What are the ethical implications of Anvil's "deferral" of income taxes and who could be harmed by the company's policy?\ In a situation such as this, what are Ms. Deliman's professional responsibilities as a CPA?\ The above information should be posted no later than 11:59 PM on Wednesday of this week. Each studint should then assess a comment of another student no later than Sunday at 11:59 PM.

Deferred Taxes Ethics Case For this week's discussion, we will explore the following scenario: Shelly Deliman, CPA, is the newly hired director of corporate taxation for Anvil Corp., which is a publicly traded company. Ms. Deliman's first job with Anvil was the review of the company's accounting practices on deferred income taxes. In doing her review, she noted differences between tax and book depreciation methods that permitted Anvil to realize a sizable deferred tax liability on its balance sheet. As a result, Anvil paid very little in income taxes at that time. Deliman also discovered the Anvil has an explicit policy of selling off plant assets before they reversed in the deferred tax liability account. This always has reported positive earnings and an increasing EPS. Deliman checked with the legal department and found the policy to be legal, but she is uncomfortable with the ethic -Why would Anvil have an explicit policy of selling plant assets before the temporary differences reversed in the deferred tax liability account? -What are the ethical implications of Anvil's "deferral" of income taxes and who could be harmed by the company's policy? - In a situation such as this, what are Ms. Deliman's professional responsibilities as a CPA? another student no later than Sunday at 11:59 PM