Title ASSIGMENT.PoA.2020.pdf ✅

P a g e 3 | 3 identified as manufacturing overhead and reported as part of inventory costs until sold. Others disagreed. T. Young believed that this cost should be reported as an expense of the current period, so as not to overstate net income. Others argued that it should be reported as prepaid advertising and reported as a current asset. The president finally had to decide the issue. He argued that these costs should be reported as inventory. His arguments were practical ones. He noted that the company was experiencing financial difficulty and expensing this amount in the current period might jeopardize a planned bond offering. Also, by reporting the advertising costs as inventory rather than as prepaid advertising, less attention would be directed to it by the financial community. Instructions: a. Who are the stakeholders in this situation? b. What are the ethical issues involved in this situation? c. What would you do if you were T. Young? The end.