Problem 2 Ted Nelson graduated from PSU about six years ago. After a few yea rs working for a Big 4 accounting firm, Ted currently works as an accounting manager for WorldCrumb Inc., a public company and manufacturer of various breads and cookies. Ted is asked by the corporate controller and his supervisor, Buford Bates, to develop journal entries to capitalize and depreciate the cost of internally developed software associated with a new accounting system developed by the company. After preparing and proposing journal entries, Ted has a meeting with Buford Bates and Sam Smith, the CFO. Sam comments that due to a recent merger, the company lost focus on the software development project. However, Sam is very concerned about the journal entries that Ted is proposing. Sam is concerned that Ted had undercapitalized the cost of the project, and he feels that there is no way that items expensed should be so high. Buford proposes alternative adjustingjournal entries for Ted to book to address the capitalization and depreciation of the cost of internally developed software that increase the cost of internally developed assets and reduce overall expenses. Questions: ' Identify the section in the AICPA Codication that addresses Ted's ethical issues. . What are the threats that Ted must add ress? . What actions should Ted take in this situation to assure that the threats are at an acceptable level