Let following thoughts of the manager at the end of company's third quarter: If I can raise my reported profit by $2 million, actual earnings per share exceed analysts' expectations, and stock prices will increase. Stock options which I am holding will become more worth. Extra income will also make me eligible to get significant bonus. With son headed to college, it would be good if I could cash in some of the choices to help pay the expenses. Though, my vice president of finance signifies that such the increase is unlikely. Projected profit for fourth quarter will just about meet expected earnings per share. There may be methods, however, that I can get desired outcome. First, I can instruct divisional managers that their preventive maintenance budgets are decreased by 25 percent for fourth quarter. That must decreases maintenance expenses by roughly $1 million. Second, I can raise estimated life of existing equipment, making the reduction of depreciation by another $500,000. Third, I can decreases salary increases for those being promoted by 50 percent. And that must easily put us over required increase of $2 million. Required: Comment on ethical content of earnings management being considered by manager. Is there ethical dilemma? Find correct choice for manager to make? Is there any method to redesign accounting reporting system to discourage kind of behavior manager is contemplating? Input in box below will not be graded, but may be reviewed and considered by instructor.