Please post your own discussion response to Ethics Case #2 here! (Note: After you submit your own discussiorresponse, you can see the stone and then you can gout your use the students' posting. (you don't post your own discussion first you cannot see others' responses Ethics Case 2: Value of shares issued for equipment Bricker Graphics is a privately held company specializing in package labels. Representatives of the firm have straned from Switzerland, where a Sissimis manufacturing custom co high pood color labeling machine Confidence is high that the new machine will help rescue Brickor from sharply declining profitability. Bricker's chief operating officer, Don Bonbon under bra for nothing the company's performance goals of achieving a rate of return on sets of at least 12% The afternoon of his return from Switzerland, Benson called Susan Sharp into his office. Sunan is Bricker Controller Benson: I wish you had been able to go. We have some accounting issues to consider Sharp: I wish I'd been there, too. I understand the food was marvelous. What are the accounting issues? Benson: They discussed accepting our notes at the going rate for a face amount of $12.5 million We also discussed financing with stock Sharp: I thought we agreed debt is the way to go for us now Benson: Yes, but I've been thinking. We can issue shares for a total of $10 milion The laboler is custom made and doesn't have a quoted selling price, but the domestic labelere we considered went for around $10 million It sure would help our rate of retum if we keep the asset base as low as possible Discussion of ethical case #2 should at least include the following questions: 1. How will Benson's plan affect the return measure? What accounting issue is involved? 2Is the proposal ethical is the desire to boost return justification for the questionable accounting treatment of the ansaction? Peasain 3. Who would be affected if the proposal is implemented