Allie, who was an accounting major in college, is the controller of a medium size construction corporation. She prepares the corporate tax return each year. Due to reporting a home construction contract using the completed contract method, the corporation is subject to the AMT in 2017. Allie files the 2017 corporate tax return in early February 2018. The total tax liability is $58,000 ($53,000 regular income tax liability + $5,000 AMT).
In early March, Allie reads an article on minimizing income taxes. Based on this article, she decides that it would be beneficial for the corporation to report the home construction contract using the percentage of completion method on its 2017 return. Although this will increase the corporation's 2017 income tax liability, it will minimize the total income tax liability over the two-year construction period. Therefore, Allie files an amended return on March 14, 2018. Evaluate Allie's actions from both a tax avoidance and an ethical perspective?