You are working as a junior management accountant at James and Co. which operates five different departmental stores selling different goods. A couple of years ago, the management implemented remodelling of its stores to attract more clients. The senior management accountant, Howard, was asked to oversee the remodelling. James offered Howard a bonus based on sales growth and profitability. While completing inventory take Howard discovered that $50,000 worth of inventory was outdated. Howard asked you to ignore the reporting of this inventory as obsolete because reporting will have an impact on financial results and his bonus. Howard offered a small percentage of his bonus as a reward. Required: State and justify the fundamental principles, as provided by the Chartered Institute of Management Accountants (CIMA) Code of Ethics1, which are being jeopardized if you accept the offer from senior management accountant. Also, as a junior management accountant, discuss the possible ethical actions that you could take to address this issue.