Discuss the below:
1. Acme would have already benefited from deducting the cost of the assets and faster depreciation method from their income in the years prior to the reversing of temporary differences began. If they were to sell these assets before the reversing of temporary differences happened, they would be able to avoid "paying back" the benefits they took and just be responsible for the taxes on gains on sales.
2. Acme is abusing the tax benefits for temporary differences. This is manipulative and unethical. They are using the loopholes of deferred tax regulations to benefit themselves.
3. Since they were supposed to pay the taxes to federal and state, the government is getting cheated and harmed.
4. Delaney should take this issue to the management and discuss why this is a dangerous practice and why they should correctly pay their deferred taxes.