Question
Dewey Cheatem, the President of Suspect Enterprises, Inc., is concerned that this years profits will EXCEED market expectations only to fall drastically over the next
Dewey Cheatem, the President of Suspect Enterprises, Inc., is concerned that this years profits will EXCEED market expectations only to fall drastically over the next several years due to some anticipated sales issues in one of its failing operations. Looking to smooth out the company's income over the next few years, President Cheatem wants to defer some of this years profits to later years (wants to shift some of this year's anticipated profits to future periods). This particular company has lots of credit customers, it offers a multi-year warranty for many of the items that it manufactures, and the company frequently purchases depreciable assets. Knowing this, briefly describetwo LEGAL but perhaps unethical ways that Cheatem can use to help Suspect Enterprisesreduce this year's income and potentially transfer this years profits to later years. But be careful, you do not want to suggest a method that will result in Dewey Cheatemwearing orange-colored clothes in a confined space in upstate New York for a few years!
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