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TROY IS THE CEO AND SOLE SHAREHOLDER OF BQT. BQT IS A VERY PROFITABLE C CORPORATION. UNTIL THIS YEAR, TROY'S SALARY WAS IN LINE WITH THE SALARIES OF OTHER COMPARABLE CEOS. HOWEVER, EARLY THIS YEAR IT CAME TO TROY'S ATTENTION THAT ANOTHER CEO FOR A SIMILARLY SIZED FIRM IN THE SAME INDUSTRY WAS RECEIVING A SALARY ALMOST TWO TIMES WHAT TROY WAS RECEIVING. WANTING TO MITIGATE THE DOUBLE TAX ON HIS CORPORATION'S INCOME, TROY DECIDE TO GIVE HIMSELF A 75% RAISE. DO YOU THINK TROY'S DECISION IS ETHICAL? WHY OR WHY NOT? READ THE ABOVE ETHICS QUESTION AND PROVIDE AN ANSWER AT LEAST 250 WORDS.

TROY IS THE CEO AND SOLE SHAREHOLDER OF BQT. BQT IS A VERY PROFITABLE C CORPORATION. UNTIL THIS YEAR, TROY'S SALARY WAS IN LINE WITH THE SALARIES OF OTHER COMPARABLE CEOS. HOWEVER, EARLY THIS YEAR IT CAME TO TROY'S ATTENTION THAT ANOTHER CEO FOR A SIMILARLY SIZED FIRM IN THE SAME INDUSTRY WAS RECEIVING A SALARY ALMOST TWO TIMES WHAT TROY WAS RECEIVING. WANTING TO MITIGATE THE DOUBLE TAX ON HIS CORPORATION'S INCOME, TROY DECIDE TO GIVE HIMSELF A 75% RAISE. DO YOU THINK TROY'S DECISION IS ETHICAL? WHY OR WHY NOT? READ THE ABOVE ETHICS QUESTION AND PROVIDE AN ANSWER AT LEAST 250 WORDS.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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TROY IS THE CEO AND SOLE SHAREHOLDER OF BQT. BQT IS A VERY PROFITABLE C CORPORATION. UNTIL THIS YEAR, TROY'S SALARY WAS IN LINE WITH THE SALARIES OF OTHER COMPARABLE CEOS. HOWEVER, EARLY THIS YEAR IT CAME TO TROY'S ATTENTION THAT ANOTHER CEO FOR A SIMILARLY SIZED FIRM IN THE SAME INDUSTRY WAS RECEIVING A SALARY ALMOST TWO TIMES WHAT TROY WAS RECEIVING. WANTING TO MITIGATE THE DOUBLE TAX ON HIS CORPORATION'S INCOME, TROY DECIDE TO GIVE HIMSELF A 75% RAISE. DO YOU THINK TROY'S DECISION IS ETHICAL? WHY OR WHY NOT? READ THE ABOVE ETHICS QUESTION AND PROVIDE AN ANSWER AT LEAST 250 WORDS.
Transcribed Image Text:TROY IS THE CEO AND SOLE SHAREHOLDER OF BQT. BQT IS A VERY PROFITABLE C CORPORATION. UNTIL THIS YEAR, TROY'S SALARY WAS IN LINE WITH THE SALARIES OF OTHER COMPARABLE CEOS. HOWEVER, EARLY THIS YEAR IT CAME TO TROY'S ATTENTION THAT ANOTHER CEO FOR A SIMILARLY SIZED FIRM IN THE SAME INDUSTRY WAS RECEIVING A SALARY ALMOST TWO TIMES WHAT TROY WAS RECEIVING. WANTING TO MITIGATE THE DOUBLE TAX ON HIS CORPORATION'S INCOME, TROY DECIDE TO GIVE HIMSELF A 75% RAISE. DO YOU THINK TROY'S DECISION IS ETHICAL? WHY OR WHY NOT? READ THE ABOVE ETHICS QUESTION AND PROVIDE AN ANSWER AT LEAST 250 WORDS.
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