Hi, I was hoping to get some help answering these case questions. The AICPA Code of Professional Conduct is very long and confusing! There are 3 questions below. Thanks

Ted graduated from University about six years ago. After a few years of working for an accounting firm, Ted currently works as an accounting manager for WorldCrum Inc, a public company and manufacture of various brands and cookies. Ted is asked by the corporate controller and his supervisor, Buford, to develop journal entries to capitalized and depreciate the cost of internally developed software associated with a new accounting system developed by the company. After preparing and proposing journal entries, Ted has a meeting with Buford and Sam, Smith, the CFO. Sam comments that due to a recent merger, the company lost focus on the software development project. However, Sam is very concerned about the journal entries that Ted is proposing. Sam is concerned that Ted had under-capitalized the cost of the project, and he feels that there is no way that items expensed should be so high. Buford proposes alternative adjusting journal entries for Ted to book to address the capitalization and depreciation of the cost of internally developed software that increases the cost of internally developed assets and reduces2 the overall expense.

Questions:

Identify the section in the AICPA Codification that address Ted's ethical issues.

What are the threat that Ted must address?

What action should Ted take in this situation to assure that the threats are at an acceptable level?