Jean Pitman, the manager of the purchasing department for United Stores, has just returned from a staff meeting.

The controller, Ernie Larson, has asked Jean to purchase a large number of circuit boards at year-end as a means of

lowering net income for United Stores. Jeans job, as manager of the purchasing department, is to buy circuit boards at the

best possible price. At the beginning of the year, she was purchasing the boards for $12 per board. The price is

currently $20 per board. Normally she would wait until next year to see if the price drops, but she is now forced to

purchase boards at $20 each to meet the request of the controller. The company uses the LIFO method of inventory

valuation, but she doesnt know what this means. She wonders if it is right to use the purchase of an inventory item

to manipulate net income and has asked you for advice, since she knows you are taking an accounting class.

What is the ethical dilemma?

Group of answer choices

It is unethical to manipulate net income.

The company will report higher earnings to its shareholders.

The company will pay more in income tax.

This type of company should be using FIFO to value its inventory.

There is no ethical dilemma.