You have recently been hired as the assistant controller for Stanton Temperton Corporation, which rents building space in major metropolitan areas. Customers are required to pay six months of rent in advance. At the end of 2018, the company's president, Jim Temperton, notices that net income has fallen compared to last year. In 2017, the company reported before-tax profit of $330,000, but in 2018 the before-tax profit is only $280,000. This concerns Jim for two reasons. First, his year-end bonus is tied directly to before-tax profits. Second, shareholders may see a decline in profitability as a weakness in the company and begin to sell their stock. With the sell-off of stock, Jim's personal investment in the company's stock, as well as his company-operated retirement plan, will be in jeopardy of severe losses.

After close inspection of the financial statements, Jim notices that the balance of the Deferred Revenue account is $120,000. This amount represents payments in advance from long-term customers ($80,000) and from relatively new customers ($40,000). Jim comes to you, the company's accountant, and suggests that the firm should recognize as revenue in 2018 the $80,000 received in advance from long-term customers. He offers the following explanation: First, we have received these customers' cash by the end of 2018, so there is no question about their ability to pay. Second, we have a long-term history of fulfilling our obligation to these customers. We have always stood by our commitments to our customers and we always will. We earned that money when we got them to sign the six-month contract.

Required:

Discuss the ethical dilemma you face. What is the issue? Who are the parties affected? What factors should you consider in making your decision?

Ethics case must be 1-2 pages double spaced... ive already done it but its too short i just need it extended-

In the given situation, the profit of the company has fallen from $330,000 in year 2017 to $280,000 in year 2018. Mr. Jim president is very concerned about it as his year-end bonus and his value of stocks in company would decline as shareholder will sell the stock. So, Mr. Jim want to recognize the advance received from the long-term customer which is in the differed revenue account of $80,000 as income for current year as he says it is received from long term customer. Mr. Jim is not correct at his position as he wants to recognize the revenue for which his company has not done the work yet, which is against revenue recognizing principle and will lead to false picture of the corporation. The persons affected will be the stakeholders of the corporation. As the assistant controller of the corporation I cant allow such thing to be done.

Excel File Edit View Insert FormatTools Data Window Help ACC 202 Ethics Case Rubric Q- Search Sheet Share Home Insert Page Layout Formulas Data Review View Conditional Formatting . Format as Table . Cell Styles ' Calibri (Body) 11 A-A--, 0 B 1 y A, Alignment Number Cells Editing Paste E10 1 Name ACC 202 Ethies Case Rubric (30 points) Briefly mentions the ethical stuation Thoroughly discusses the ethical Oignoses the ethical situationFlis to discuss thestuatien Does not identify the stakeholders dnti fies some ol the staktholders ldentihes all relevant stakeholders ets Cnn Describes all possible courses of 6 Courves of Action ofactions Understandstheimpact on eachDoes not discuss the impact of the Briety discusses theimpact of each Clarly discusses impact of each on some stakenolders Gives no logical answer or treats issue Provides a decision with little 8 MakesaDecision reanoning to support the decision.Gives well-reasoned decision Moderate sumber of spelling Misimal speling, typographical or 10 Total Points 15 21 4Sheet1 Sheet2 Sheot3 +