Requirement $2.$ What would you recommend Maddox do$?$

A$.$ Maddox should agree to cut planned bonuses to the Amiven R&D team and sell off the rights to Centrix. Both of these decisions will benefit Pharmex in the short$-$term and long$-$term. If Alford asks Maddox to capitalize R&D$,$ he should raise this issue with the CEO of the company. If the CFO still insists on Maddox capitalizing R&D$,$ he should resign rather than engage in unethical behavior.

B$.$ Maddox should resign immediately.

C$.$ Maddox should contact legal counsel. If legal counsel is unwilling to take legal action against Alford, then Maddox should resign.

D$.$ Maddox should not agree to cancel the planned bonuses to the R&D team. He could, however, compromise with Alford and defer the bonuses until the following quarter. Doing so may give Pharmex the time necessary to improve revenue needed to meet projections. Maddox should argue against cancelling the bonuses altogether, but not resign if Alford insists that these actions be taken. If$,$ however, Alford asks Maddox to defer the expense recognition, or to capitalize R&D$,$ he should raise this issue with the chair of the audit committee after informing Alford that he is doing so$.$ If the CFO still insists on Maddox capitalizing R&D$,$ he should resign rather than engage in unethical behavior.