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Just a couple sentences answering: what is the ethical dilemma, what would be the impact of the suggestion, who would benefit, and who would be injured. Thanks for the help!

Ethics Case 3-16 Segment reporting Appendix 3 You are in your third year as an accountant with McCarver-Lynn Industries, a multidivisional company involved in the manufacturing, marketing, and sales of surgical prosthetic devices. After the fiscal year-end, you are working with the controller of the firm to prepare geographic area disclosures. Yesterday you presented her with the following summary information $ in millions) Revenues Operating income 145 76 88 21 Assets Domestic Libya Egypt France Cayman Islands Total 845 $222 $265 $343 $2,31 $3,986 912 1.919 642 1,005 301 290 38 285 Upon returning to your office after lunch, you find the following memo: Nice work. Let's combine the data this way ($ in millions) Domestic Africa Europe and Other Foreign Total $3,986 972 1,919 $B45 $487 Revenues Capital expenditures 145 164 Assets $2,654 663 323 1,005 591 Because of political instability in North Africa, let's not disclose specific countries. In addition, we restructured most of our French sales and some of our U.S, sales to occur through our offices in the Cayman Islands. This allows ies to avoid paving higher taxes in those cownries. The Cayman Islands has a 0% corporate income tax rate, we don't want to highlight our ability to shift profits to avoid laves Page 161 Required Do you perceive an ethical dilemma? What would be the likely impact of following the controller's would benefit? Who would be injured

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