You are in your third year as an accountant with McCarver-Lynn Industries, a multidivisional company involved in the manufacturing, marketing, and sales of surgical prosthetic devices. After the fiscal year-end, you are working with the controller of the firm to prepare geographic area disclosures. Yesterday you presented her with the following summary information: Revenues Operating income ($ in millions) Domestic Libya Egypt France Cayman Islands $ 845 $222 $265 $343 $2,311 145 76 88 21 642 1,005 301 290 3 8 Total $3,986 9 72 1,919 Assets 285 Upon returning to your office after lunch, you find the following memo: Nice work. Let's combine the data this way: ($ in millions) Revenues Domestic Africa $ 845 $487 145 . 164 1,005 591 Europe and Other Foreign $2,654 663 Total $3,986 972 Capital expenditures Assets 323 1,919 Because of political instability in North Africa, let's not disclose specific countries. In addition, we restructured Page 161 most of our French sales and some of our U.S. sales to occur through our offices in the Cayman Islands. This allows us to avoid paying higher taxes in those countries. The Cayman Islands has a 0% corporate income tax rate. We don't want to highlight our ability to shift profits to avoid taxes. Required: Do you perceive an ethical dilemma? What would be the likely impact of following the controller's suggestions? Who would benefit? Who would be injured